Schedule E Question

[peteZ88]

I have two rental properties that are out-of-state.  So I need to purchase two additional states in turbotax.  Can I deduct the cost of these additional state tax forms on scheduled E?  If so, where do I put these expenses.  Thanks

[DianeW777]

Yes, since they are needed specifically for your rental and they can be supplies, office expense or miscellaneous expense in the rental activity. Use the one that makes the most sense to you.

The IRS may want some of the expense as personal use, however if it were not for the rental properties located in those states you would not need them. It is logical that it is strictly a rental activity expense.