SCHEDULE E & property taxes

[MargaretMort]

I am trying to finish a tax return that has plagued me for a couple of weeks--always find one more thing to question and want further info about. Right now I am reviewing the entire return to make sure I have entered everything--too many pieces of paper and too much information--and I was double checking the property tax info for the Sch A. There is a line that says Rental Property Tax from Sch E. Client co-owns with her 2 sisters 2 pieces of property . Both are showing losses--depreciation caused--that are carrying forward. Can I take her share of the property taxes and move them to her Sch A. Seems like a good move to take advantage of the deduction now rather than waiting. I will look up some info but was wondering if I am in the right. MM

[jasdlm]

Is there personal use of the property? How much (%)?

[MargaretMort]

No personal use. the losses can't be taken because TP's AGI too high. I am inclined to add the property tax to the Schedule A, just want someone to pay me on the head and said "Good one!" I have a bad habit of questioning everything and working my way into a hole with no way out. MM

[RoyDaleOne]

Generally, you should not move rental properties' real estate taxes and interest from Schedule E to Schedule A. Business expense, passive activity, and all those rules you would be circumventing.

Sometimes you can when it is based on personal use limitations, however, not for other reasons.

[MargaretMort]

That makes perfect sense. I had looked up the pub. and anything else i could lay my eyes on and didn't get an answer. Knew I could get it here. Many thanks. MM

[kcjenkins]

Only the real estate tax on the Personal Residence is eligible for the addition to the std deduction.