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Home Office Excess Real Estate Taxes

Forum|Forum|2 years ago
February 28, 2024
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This is very unclear to me. I'm not sure why TT cannot calculate this for me.

Some say I need to use some type of prorated excess others say just use your property taxes plus your state and local taxes and subtract 10,000 and then that is your excess. I'm not even sure where to find my state and local states in TT. I found something on schedule A but that was just what I paid. Is that for the calendar year 2023 and is that what I want?

Please advise as I am thoroughly confused on this.

TurboTax Home & Biz Windows

Best answer by Vanessa A

Ok. If you did NOT itemize your return, but you own your home and paid property taxes, then a few steps back it asked for you to enter your real estate taxes. In that section, if you are NOT itemizing, then you would not enter anything there. If you DID itemize your return, then you would enter the amount of all the taxes you paid in this section. This would ONLY be property taxes, it would NOT include sales or income taxes you paid.

Again if you DID NOT itemize, then you will enter the ENTIRE amount of taxes you paid on your home in the Excess Real Estate taxes.

If you DID itemize, you will not enter anything in the Excess Real Estate Taxes, instead you would have entered it in the previous spot for Real estate taxes and you will leave the Excess Real Estate tax box blank.

V

Vanessa A

What exactly are you trying to do? If you have a home office, this is not reported on Schedule A. Schedule A is for itemized deductions. Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI, charitable donations and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.

TurboTax will automatically transfer your state and local taxes to your itemized deduction section as you enter your W-2 and any other items showing taxes withheld or estimated taxes paid.

The 2023 Standard Deductions are as follows:

Married Filing Joint (MFJ) $27,700
Married Filing Separate (MFS) $13,850
Head of Household (HOH) $20,800
Single $13,850

Blind and MFJ or MFS add $1,500

Single or HOH if blind add $1,850

Are you self-employed and have a home office? If so, then you can enter a prorated amount of your Home Mortgage interest and your Home Property taxes as expenses for your home office on Schedule C. You would not deduct any type of state and local sales taxes for this. You would ONLY enter your property taxes. As you walk through the home office section, you would be prompted to enter the size of your office and the total size of your home. So, if your home office was 200 Sq. Ft., and your home is 2,000 sq. ft. you would get a deduction for 10% of your property taxes paid IF you chose to use the actual expenses for your home office deduction instead of the standard deduction for your home office deduction.

The Home Office Deduction

Standard versus Itemized Deduction

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T

TryingToUseTTAuthor

I am self-employed and have a home office. While going through the home office "interview' it asks you to enter your Excess Real Estate Taxes. My question is how do I figure out what that is for the purposes of the Home Office "interview"?

BTW, I only referred to Scheduled A because the help for that field referenced it.

V

Vanessa AAnswer

Ok. If you did NOT itemize your return, but you own your home and paid property taxes, then a few steps back it asked for you to enter your real estate taxes. In that section, if you are NOT itemizing, then you would not enter anything there. If you DID itemize your return, then you would enter the amount of all the taxes you paid in this section. This would ONLY be property taxes, it would NOT include sales or income taxes you paid.

Again if you DID NOT itemize, then you will enter the ENTIRE amount of taxes you paid on your home in the Excess Real Estate taxes.

If you DID itemize, you will not enter anything in the Excess Real Estate Taxes, instead you would have entered it in the previous spot for Real estate taxes and you will leave the Excess Real Estate tax box blank.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"