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51720

51720

The following diagnostic is generating:

Business Use of Home: When claiming itemized deductions and the total of state and local income (or general sales) taxes, real estate taxes, and personal property taxes is more than the limit of $10,000 ($5,000 if married filing separately), you must use the Form 8829 line 11 worksheet to determine the amount of real estate taxes to enter as direct real estate taxes and direct excess real estate taxes. Do not enter any of the real estate taxes as indirect expenses.

Solution:

This diagnostic is triggering when the total of state and local income (or general sales) taxes, real estate taxes, and personal property taxes is more than the limit of $10,000 ($5,000 if married filing separately) and the amounts were entered in the Indirect section. When more than the limit do not enter any of the real estate taxes as indirect expenses. Remove the Indirect expenses and use the Form 8829 line 11 worksheet to determine the amount of real estate taxes to enter as direct real estate taxes and direct excess real estate taxes. (see Form 8829 instructions and complete the Line 11 Worksheet for amount to enter) This diagnostic if ignored will not prevent e-file

 

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