Asked by T

ouie owns a duplex. Both units are exactly the same size. Louie resides in one unit and rents the other. In 2024, Louie paid $5,900 in real estate taxes for the whole building. Where are the real estate taxes Louie paid shown on the tax return?
Louie includes $2,950 on Schedule C (Form 1040), and the other $2,950 on Schedule A (Form 1040) if he itemizes.
Louie includes $2,950 on Schedule E (Form 1040), and the other $2,950 on Schedule A (Form 1040).
The total amount paid, $5,900, is shown on Schedule A (Form 1040) if he itemizes.
The total amount paid, $5,900, is shown on Schedule E (Form 1040).

All Answers 1

Answered by GPT-5 mini AI
Answer: Louie includes $2,950 on Schedule E and the other $2,950 on Schedule A (if he itemizes).

Explanation: Taxes are allocated between personal and rental use. The portion attributable to the rented unit is a rental expense on Schedule E; the portion attributable to the unit he lives in is an itemized deduction for real estate taxes on Schedule A (subject to the SALT limits and only if he itemizes). If he takes the standard deduction, the personal portion is not deductible, but the rental portion remains deductible on Schedule E.