Question

Property tax and Utilities for Garden Nursery Business

Forum|Forum|2 years ago
March 26, 2024
1 reply
0 views

Hello,

We run a Garden Nursery business out of our backyard. The greenhouse is a separate structure on our primary residence. My understanding is that I can deduct a portion of the property tax and utilities that used for the business.

Regarding property tax. Let's say my total property tax for 2023 was $10,000. if I use 1/5 of the land for Nursery etc, I'm assuming I can use $2000 as a business deduction. But do I only enter in $8000 for the property tax paid when it comes to the section where i enter in property tax for our primary residence?

thx, duc

A

AnnetteB6

Yes, you would only enter the remaining $8000 in property taxes for your Schedule A deduction.

You can only deduct the total amount one time in your return, even though it may be split up into different places in the return. Doing it any other way would be double-dipping and deducting too much.

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