Critical Diagnostic Warning Ref. #51720

[Miss P CPA]

when Claiming itemized deductions and the total of state and local income taxes, real estate taxes, and personal property taxes is more than the limit of $10K (NY) 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 n ot enter any of the real estate taxes as indirect expenses (ref. #51720)

[Strongsilence-CPA]

How did you address this diagnostic?

[Miss P CPA]

Still working on it.

Now on the phone with Lacerte tech support

[abctax55]

Use the worksheet in the IRS instructions.

Put the OIH amount in DIRECT expenses, put the personal amount directly on Screen 25.

[Strongsilence-CPA]

I created a spreadsheet based on the IRS worksheet.