What real estate taxes are deductible for the home office deduction?
Enter the entire amount of real estate taxes (also referred to as property taxes) in both the Home Office section and the Taxes Paid area of the Itemized Deductions section. Using the square footage amounts you entered on the previous screen, we'll calculate how much can be deducted as home office expenses. The rest will be included with your Itemized Deductions.
For example, suppose you have $2,000 in real estate taxes and the home office percentage of your home is 10%. You would enter the entire $2,000 on the Expenses for the Entire Home screen and the Itemized Deductions section. $200 ($2,000 * .10) of the real estate taxes will be deducted as home office expenses, and $1,800 will be included in your Itemized Deductions.
What if the total of my state and local income tax, real estate taxes, and personal property taxes is over the deductible limit and I'm itemizing deductions?
If you know you're taking the standard deduction, you can opt to enter all the real estate taxes for the home used for your business as excess real estate taxes. However, do NOT enter any amounts as excess real estate taxes if those amounts are also included in the real estate taxes amount.
For example, suppose you have $2,000 in real estate taxes and the home office percentage of your home is 10%. You would enter the entire $2,000 on the Expenses for the Entire Home screen and the Itemized Deductions section. $200 ($2,000 * .10) of the real estate taxes will be deducted as home office expenses, and $1,800 will be included in your Itemized Deductions.
What if the total of my state and local income tax, real estate taxes, and personal property taxes is over the deductible limit and I'm itemizing deductions?
If you know you're taking the standard deduction, you can opt to enter all the real estate taxes for the home used for your business as excess real estate taxes. However, do NOT enter any amounts as excess real estate taxes if those amounts are also included in the real estate taxes amount.
