The property taxes applied to the home office would not REALLY be deductible on Schedule A, because of the $10,000 limitation on deducting taxes paid. So if we take a deduction for part of the real estate taxes attributed to a home office, that will increase the client's overall deductions.

 

At least that's the way Intuit ProSeries is calculating it. 

And it does not seem to be what the IRS Publication 587 says.

Any thoughts on that? Is the IRS going to reject our home office deduction for part of the real estate taxes?

Thank you!