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February 13th, 2019 at 07:49 am


I hope someone can help with this:

Does the $10K property tax deduction cap include just primary residence? We have two other rental property and in all we pay over $23K for all three houses.

We are doomed if that's the case. Frown

4 Responses to “Question”

  1. creditcardfree Says:

    I'd look
    Text is here and Link is https://www.irs.gov/publications/p530
    here, but I quoted the first part I found that points to the fact that you are likely limited to $10K. But it has a 'caution' sign by it. There has been talk that this may still be changed?! I'm not an expert so do some looking or call a local tax preparer or the IRS.

    "Limitation on the deduction for state and local taxes. You cannot deduct more than $10,000 ($5,000 if married filing separately) of your total state and local taxes, including taxes (or general sales taxes, if elected instead of income taxes), real estate taxes, and personal property taxes. See the Instructions for Schedule A (Form 1040) for more information."

    I'm sorry if this is news! It was one of the biggest complaints of the new tax reform on high property tax states. I would hope that states might make adjustments,otherwise people are going to start leaving those states.

  2. Petunia 100 Says:

    Property taxes for your rental houses are deducted on Schedule E, not on Schedule A. Schedule A is only for your personal itemized deductions. You're fine. Smile

  3. AnotherReader Says:

    Rental property is handled on Schedule E. Property taxes for your rentals are deductible as an operating expense. Nothing has changed. If you have a positive income from these properties, you might even qualify to deduct 20 percent of the net income received as QBI, if you meet certain requirements.

  4. creditcardfree Says:

    Oh good to hear from those who own rental property! Sorry to mislead, the first article I pulled up mentioned rental property in regards to the new tax law...so I was trying to go direct to the source, but clearly I did not have the full picture.

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