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October 13, 2023
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Are Hawaii GE and TAT taxes deductible in California

  • October 13, 2023
  • 2 replies
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Hello,

I own a rental condo in Maui and pay GE and TAT taxes on my net income. Can I deduct those taxes from my California taxes?

 

 

Best answer by TomD8

Those are business taxes and can be deducted as rental expenses on your federal Schedule E.

Your rental income after expenses will be included in your California AGI, in effect crediting you for those taxes.

2 replies

Employee
October 14, 2023

You can deduct those taxes from your federal income tax return but most likely not from your California income tax return (not directly, at least).

 

Hopefully, someone familiar with CA income tax law will respond.

ChurroAuthor
October 14, 2023

Thank you for your response! Much appreciated! 

TomD8Answer
Employee
October 14, 2023

Those are business taxes and can be deducted as rental expenses on your federal Schedule E.

Your rental income after expenses will be included in your California AGI, in effect crediting you for those taxes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
ChurroAuthor
October 14, 2023

Thank you so much! That’s kind of what I figured but was hoping there was another deduction I wasn’t aware of. California taxes are so ridiculous any little bit helps! 😂