Interest in Oil & Gas Property

[Mcb050032]

If I own a royalty interest in oil and gas, I report the royalty income on Sch E - am I also able to deduct my interest of property taxes I paid during the year on Sch A (personal property taxes)?

[DawnC]

You can deduct the property taxes related to the royalty property on Schedule E with the income.   Any property taxes not related to that income can get deducted as a personal itemized deduction on Schedule A.   The Schedule A deduction is limited; the personal deduction of state and local income, general sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).    The property taxes go on either Schedule E or A - but not both.