In addition to our primary home, we have a vacation home in another country. We rent out the vacation home for 80% of the year and use it ourselves for 20%. I do Schedule E for the rental income. In the Schedule E section of TT, I include the real estate taxes we pay on the vacation home. TT automatically allocates 80% of the real estate taxes as an expense in Schedule E.
My question is, how do I claim the 20% personal use portion of the real estate taxes? I have a note that I wrote to myself from a previous year that says TT will automatically include it in Schedule A, but I can't seem to find that number on Schedule A. Line 5b only shows the real estate taxes that I entered for our primary home.
In the interview section of TT for property taxes, there are spaces to input three numbers:
- Property tax on your main home.
- Additional homes or land
- Foreign real estate taxes.
I tried entering the 20% real estate taxes for our vacation home in the space for foreign real estate taxes. But then I noticed that TT SUBTRACTED that amount from the property tax on our main home and included the result on line 5b. That didn't seem right. So, how should I do it?
Thanks.
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Make a manual entry on Schedule A for the 20% of the RE tax.
If you're a homeowner, your property taxes are entered in the Deductions & Credits section:
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