New to Real Estate · San Jose, CA · Member since 2017 · 91 posts · 23 votes
Had a question about deduction of property taxes on investment property.
So the limit of property tax deduction on personal home is $10K.
Is the deduction of property tax on investment property counted separate?
Meaning, if I am already deducting $10K on my personal property, can I also deduct $10K from my investment property. Or is the $10k limit inclusive of all properties (personal+ investment)
Investor · San Diego · Member since 2020 · 8 posts · 5 votes
3y
In a situation where the owner occupies one unit of a 4plex and property taxes exceed $10k, is there an option to deduct more than the limit? i.e. if the owner-occupied portion is 40% of the square footage of the property and the remaining rentals account for 60%, can 60% of the total property tax paid for the year be deducted, even if it surpasses $10k? Thank you
In a situation where the owner occupies one unit of a 4plex and property taxes exceed $10k, is there an option to deduct more than the limit? i.e. if the owner-occupied portion is 40% of the square footage of the property and the remaining rentals account for 60%, can 60% of the total property tax paid for the year be deducted, even if it surpasses $10k? Thank you
Your expenses (including property taxes) are allocated between rental portion and personal use portion. The portion that is allocated to rental usage is not limited.
A talented CPA/tax professional can do this allocation for you and ensure your taxes are reported correctly.
In a situation where the owner occupies one unit of a 4plex and property taxes exceed $10k, is there an option to deduct more than the limit? i.e. if the owner-occupied portion is 40% of the square footage of the property and the remaining rentals account for 60%, can 60% of the total property tax paid for the year be deducted, even if it surpasses $10k? Thank you
Your expenses (including property taxes) are allocated between rental portion and personal use portion. The portion that is allocated to rental usage is not limited.
A talented CPA/tax professional can do this allocation for you and ensure your taxes are reported correctly.