Form 8825 real estate taxes problem
The problem:
Form 8825 now only has a line for "real estate taxes" rather than just "taxes". The old program was better, because in the current day and age, a lot of the taxes paid for rentals is either California FTB tax $800 a year, (or more importantly, pass thru entity elective tax). Neither of these types of taxes are deductible for state tax purposes (but they are deductible for Federal). So, we need Lacerte to either:
1. Add another line to the rental screen for "taxes other than real estate". Then add a new line at the bottom of the screen entitled "taxes other than real estate, state if different".
2. Or, alternatively Lacerte should finally break down and add a new column, to the right of the first column entitled "state, if different", that would apply to every single line item on the rental screen (including the "other expenses" section that you access with Control E.
I just called Lacerte technical support, they have no suggestions, and instructed me to access these feedback forum.
This is a significant issue, affecting nearly any LLC in California that's engaged in the rental business, as well as filings for other states that have pass thru entity elective tax.
It seems that other users have previously commented about this issue, but no action has been taken. When we may expect this to be corrected?
