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property tax 8829 line 11 worksheet

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Level 3
last updated ‎July 11, 2020 3:00 PM

What happens to the personal portion of property taxes when SALT limitation applies, shouldn't it flow to schedule A line 5b?

I completed the 8829 line 11 worksheet. Line 11a is zero and line 17a is $1,200.  On screen 29 I removed the real estate tax from indirect column and entered the $1,200 on the excess real estate taxes  line under Direct Expenses.  The $1,200 goes to the 8829 perfectly, but the $8,200 remainder does not flow to schedule A.

Do we need to make a manual entry of the personal portion of property tax on schedule A or is lacerte correct they do not get the deduction.  It seems like Lacerte's error messages are forcing them to use standard deduction since the personal portion of property tax is not flowing.

Thank you

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2 Replies 2
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Level 15
last updated ‎July 11, 2020 3:00 PM

The direct  portion should be the total prop tax times the business use of home percentage, NOT the entire amount.   And you are supposed to do thru the worksheet in the instructions for F 8829 (as the diagnostic says.   But the ones I've done that on haven't changed.

Direct expenses are not multiplied by the OIH percentage, so your F 8829 couldn't have been correct.

And yes, you must manually put the reciprocal amount manually on Sch A.

Sorta ridiculous for software costing as much as Lacerte does

Former Chump... umm.... AllStar.
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Highlighted
Level 3
last updated ‎July 11, 2020 3:00 PM

Thanks for replying!  I manually calculated the business portion and it is the same as the worksheet line 10 - always seems to be the same each time I do this.  In order to get my $1,200 business portion onto 8829 line 17a I enter it on screen 29 unser direct excess real estate. That part seems ok.  Now it seems pretty obvious that I need to enter the personal portion directly on schedule A because Lacerte doesn't know about it since I took it out of the indirect section.  Too bad Lacerte isn't programmed so we wouldn't have to split it out ourselves.

The personal portion pushes them over the $10,000 limit but if I don't enter it myself, Lacerte gives the message  "Since this return is not claiming itemized deduction, you must check the box to allocate morgage interest, taxes, etc when claiming the standard deduction."

 

 

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