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peterboo1
New Member

separating personal residence and business real estate taxes on 1041 for revocable trust

In 2021, my personal revocable trust paid real estate taxes of roughly $3,500 on rental farmland, $1,700 on vacant land and $6,000 on my home – i.e., more than $10,000. Presumably, the real estate taxes on the rental & vacant land are not subject to the $10,000 limitation on deductibility for such taxes.  In working through Turbotax for completing the 1041 for the trust, I only see one place – “Your Deductions,” “Taxes” for listing those real estate taxes. Where in Turbotax do I separate out those taxes so that I’m not limited to the $10,000 limitation?

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Accepted Solutions
tagteam
Level 15

separating personal residence and business real estate taxes on 1041 for revocable trust

You only see one place (Your Deductions) because you are preparing a 1041 for a grantor trust.

 

The grantor information statement requires that you separate each deduction manually and, as a result, you need to enter each one on a different line.

 

For example, real estate taxes on the rental should be stated separately from the real estate taxes on your home and vacant land. Taxes on the vacant land and your home are entered (transferred from the GIS to your personal return) on Schedule A whereas real estate taxes on your rental property are entered on Schedule E of your 1040.

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1 Reply
tagteam
Level 15

separating personal residence and business real estate taxes on 1041 for revocable trust

You only see one place (Your Deductions) because you are preparing a 1041 for a grantor trust.

 

The grantor information statement requires that you separate each deduction manually and, as a result, you need to enter each one on a different line.

 

For example, real estate taxes on the rental should be stated separately from the real estate taxes on your home and vacant land. Taxes on the vacant land and your home are entered (transferred from the GIS to your personal return) on Schedule A whereas real estate taxes on your rental property are entered on Schedule E of your 1040.

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