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IRS Section 216 Deduction

Does anyone know where the IRS 216 Deduction for tenant stockholders of a cooperative can be entered in Turbotax online. It is a schedule A deduction but there does not seem to be a place to enter it in the on-line version of software.

Thank you,

Scott

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3 Replies
CatinaT1
Employee Tax Expert

IRS Section 216 Deduction

Section 216 is a deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder. Cooperative housing residents have the same potential tax benefits as other homeowners, including taking their share of the mortgage interest and real estate taxes as a deduction on Schedule A of their 1040 federal income tax return.

 

Based on  your question, I am assuming you are itemizing your deductions instead of using the standard deduction. These costs are only deductible if you are itemizing your return and would be entered in the Deductions and Credits section of TurboTax Online.

 

 

Are your expenses lumped together or are they separated out by taxes and interest. Hopefully they have them separated for you. The interest will be recorded under mortgage interest. It's okay that you don't have a 1098. Your taxes will be recorded under Property Taxes.

 

Since you don't have a regular mortgage, but follow the prompts and click on the ? or Learn More areas for additional information. 

 

If you have additional questions, let us know.

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IRS Section 216 Deduction

Hi Catena,

Thank you for response. Turbotax does not allow me to enter the 216 deduction other than lumped with other real estate taxes and maxes out at 10K. I understand that this may be controversial with IRS but my CPAs have entered the 216 deduction on Schedule A for past 8 yrs and it is within the law as it is written.

I have spent hours on the phone with Turbotax but the software is defective in not allowing this legal deduction to be entered.

CatinaT1
Employee Tax Expert

IRS Section 216 Deduction

Can you explain further? Do you have real estate taxes and interest all lumped together or are they reported as separate numbers?

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