What if the total of my state and local income tax (or general sales taxes, if elected), real estate taxes, and personal property taxes is over the deductible limit and I'm itemizing deductions?
If the total of your deductible taxes is over the limit of $40,000 ($20,000 if married filing separately) and you're itemizing deductions, you'll need to use the Line 11 Worksheet in the Form 8829 instructions to figure the amount to enter for your home office deduction.
On the Home Office Only Expenses screen, enter the amount from Step 9 of the worksheet as real estate taxes, and enter the amount from Step 10 of the worksheet as excess real estate taxes.
To figure the amount to enter in the Itemized Deductions section, add Step 2 of the worksheet to Step 3 then subtract Step 6.
On the Home Office Only Expenses screen, enter the amount from Step 9 of the worksheet as real estate taxes, and enter the amount from Step 10 of the worksheet as excess real estate taxes.
To figure the amount to enter in the Itemized Deductions section, add Step 2 of the worksheet to Step 3 then subtract Step 6.
