Question

excess real estate tax

Forum|Forum|2 years ago
February 4, 2024
1 reply
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I have home office and it can only claim 10%. My real estate property tax is $8000. I am not uing itemized deduction. My state & local tax is $3000. My property tax is $200. What amount should I put as excess real estate tax?

Under the Tax Cuts and Jobs Act, for 2018 through 2025, itemized deductions for personal state and local tax amounts are limited to a combined total of $10,000 ($5,000 for married filing separately filing status).

If you aren't itemizing deductions and paid real estate taxes, those taxes are excess real estate taxes.

The limitation applies to state and local income (or sales) taxes and property taxes.

Therefore my total tax paid is (8000+3000+200=11200). Of which 71.43% is for Real Estate tax. So is my excess real property tax is (11200-10000)*71.43% = 857. Should I be putting $857 for the Excess real estate tax?

TurboTax Home & Biz Windows

PatriciaV

You will have a better outcome if you enter your information through the step-by-step process. TurboTax will calculate these amounts for you and enter them on the correct forms. You can always choose not to take the standard deduction, so you see the effect of itemizing the state and local taxes you paid.

Property Taxes are entered under Deductions & Credits >> Your Home >> Property Taxes.

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