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Kaity Pari
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Investment property and $10,000 cap on state/local tax deductions

Kaity Pari
Posted Jul 1 2020, 18:17

I live in California. 

I have a primary residence where I am paying $8000/year in property tax.

I have 2 rental properties, for each of them I am paying $6000 in property tax. Total $12,000.

As per the new guidelines, $10,000 cap on state/local tax -- does this cap apply on investment properties receiving rental income?

Meaning, am I able to deduct all $20,000 (8k + 12k) from my taxes ? Or does the $10,000 apply to my situation?

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This $10K cap does not apply to mortgage interest, correct?

Also, want to confirm that HOA dues are tax deductible (on rental property)?

thank you !

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