With the TCJA laws, we are supposed to be able to pick to deduct the property tax or state withholding. How can we enter that in Lacerte?

fredtaxsvc · ‎12-06-2019

The tax update seminars said we could choose to use $10,000 of the property tax instead of the state withholding so that any state tax refunds would not be taxable next year. How do we elect that in the software?

PhoebeRoberts · ‎12-06-2019

IMHO, there exists no election; the tax benefit rule handles the ordering appropriately without anyone doing anything. I agree that the webinar person said that there was an election. I believe that person was mistaken.

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George4Tacks · ‎12-06-2019

Checking the box on Schedule A looks like an election. IRS should finalize regs shortly after these rules expire.

Answers are easy. Questions are hard!

PhoebeRoberts · ‎12-06-2019

That box is for when your sales tax is better than income tax. Not the OP's question at all.

George4Tacks · ‎12-06-2019

Lacerte seems to do a pretty good job of picking up the property tax first, so that SIT refund does not come into play. Look at Schedule A, line 5a for the check box.

If you don't like the default, go to Scheed 25 and read the blue highlight text at Taxes, the next entry allows to do to otherwise. There is also a Frequently Asked Questions you can click to get to https://accountants-community.intuit.com/articles/1606455&src=lscosi

Answers are easy. Questions are hard!