Rental Expense?

[Super Mom]

I have an older lady with rentals. She had 190.00 she had to pay to state last year only because of the rental income, if did not have rentals would not have owed. I'm thinking I can count that as a rental expense because paid in 2016. Am I right?

[ABevilacqua]

Although I am not sure, I think the reasoning is sound.

[Burke]

NO WAY that state income taxes can be classified as a rental "expense." Nice try, though.

[Super Mom]

Why not? She would not have had the expense if she did not have the rentals.

[spanel]

Why not? She would not have had the expense if she did not have the rentals.

Same reason a Self employed individual cannot deduct taxes paid to the IRS. No deduction.

Chris

[RitaB]

It's a no from me

https://www.irs.gov/taxtopics/tc503.html

[Super Mom]

Same reason a Self employed individual cannot deduct taxes paid to the IRS. No deduction.

Chris

True but there is a deduction for part of the self employment paid. This woman would not have even had to file if not for the small profit on rentals!

[New York Enrolled Agent]

True but there is a deduction for part of the self employment paid. This woman would not have even had to file if not for the small profit on rentals!

The requirement to file is not determined by "small profit" but by gross rents. None of us know the amount of rent collected but you used the word RENTALS (as in more than one). There is a high probability she must file regardless of profit.

[Super Mom]

The requirement to file is not determined by "small profit" but by gross rents. None of us know the amount of rent collected but you used the word RENTALS (as in more than one). There is a high probability she must file regardless of profit.

Ok, I will stop beating this one to death!! Just trying to help this elderly lady!! Thanks for all of your help!!

[S T]

State taxes paid are to be placed on Sched A - Line 5

State tax deductions do not belong on Sched E

Your scenario is unusual, if no Federal Tax from the Sched E, why a State Tax generated on Sched E - I almost never see that --- must be some other income or a depreciation adjustment on Sched E

Sandy

[Super Mom]

State taxes paid are to be placed on Sched A - Line 5

State tax deductions do not belong on Sched E

Your scenario is unusual, if no Federal Tax from the Sched E, why a State Tax generated on Sched E - I almost never see that --- must be some other income or a depreciation adjustment on Sched E

Sandy

Thanks, I will check to make sure there is not some adjustment. I'm in NC, our state tax is pretty high I think.

[Super Mom]

I double checked and there are no adjustments to income on the state return. NC just offers less deduction for 1 standard deduction for filing status, vs standard deduction and personal exemption on Federal.

[FEDUKE404]

Shocking

You can't really be serious about trying to deduct personal income taxes as a valid rental property expense?!?

What if the lady had paid a "small amount" of federal taxes. . .would you also try to treat those as an ordinary and necessary business expense?

Good grief.

FE

[Super Mom]

Ok, I will stop beating this one to death!! Just trying to help this elderly lady!! Thanks for all of your help!!

Just grasping at straws to try to help this lady, I get it!!!!

[Jiggers]

Surely the time spent to help someone take a $190 deduction to save a few dollars in taxes is going to cost the person more than the tax saved. No?