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Rental Itemized deductions and Personal Standard Deduction

Forum|Forum|5 years ago
April 21, 2021
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So I have a few rentals and I itemize everything on those with the total that exceeded 10k. Now this is strictly rentals and not personal I do everything under one umbrella so there is no LLC or anything like that.

I just use the Rental Turbo Tax version of the product.

On paper I have surpassed the itemized deduction but that is all with the rentals not personal.

Can I also take standard deduction even though the rentals exceeded the itemized 10k?

What I am trying to do is take the standard deduction or try to deduct my personal home taxes. (not sure if this is ok or not and hence why I am here ) Right now it says that I have reached the limit but that includes my rentals. I have not input any of my personal taxes in.

While filling out the turbo tax it said "You've maxed out the federal $10,000 deduction for itemized state and local taxes."

Best answer by Critter-3

You are mixing up apples and oranges ... first the rentals are reported on the Sch E and you may have an overall loss on that form.

THEN you are allowed the larger of the Sch A (itemized deductions) or the standard deduction.

The expenses for the rentals on the Sch E do not ALSO go on the Sch A. These are totally separate situations on the tax return.

Critter-3Answer

You are mixing up apples and oranges ... first the rentals are reported on the Sch E and you may have an overall loss on that form.

THEN you are allowed the larger of the Sch A (itemized deductions) or the standard deduction.

The expenses for the rentals on the Sch E do not ALSO go on the Sch A. These are totally separate situations on the tax return.

W

Walter585Author

I was all screwed up. I always do standard deduction and in turbo tax its starts you off with that before you hit numbers higher then the standard then it will switch you over. I tired to see how my taxes would look if I itemized my personal which led me down a rabbit hole as I fully didn't understand the SALT deductions.

Again thanks for the help!

Carl11_2

Employee

Your rental expenses are business expenses, and have no impact at all on your "personal" SCH A itemized deductions. There are no limits to your deductible rental expenses on the SCH E, since rental property "is" business property. You could have $50,000 of deductions on the SCH E, and it doesn't affect any of your SCH A deductions or SCH A limits at all.