New Jersey property tax deduction

Forum|Forum|2 years ago
March 12, 2024
1 reply
16 views

Hi. Husband & wife both own homes in New Jersey prior to getting married and decided to keep the two homes even after getting married. Husband lives in his home for most of the year, while wife lives in her home for most of the year. They pay NJ property tax on both homes and are filing MFJ for 2023. What amount should be entered on NJ return line 40a for property tax deduction? Can they deduct both homes real estate taxes or pick one that they both live in for most of the year?

ProSeries Basic

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Skylane

Intuit Community Champion

Sorry, only one main/primary residence allowed... the other would be consider 'additional' and not eligible.

In PS, Worksheet G will allow you to list (for example) 365 days at location 1 and 354 days at location 2 and will calculate with the total BUT Intuit is, was, and always will be WRONG.

NJ Instruction for worksheet G says total days = 365. (you can list one for 200 days and the other for 165 days and apportion the taxes accordingly).

The State will default to the address on the return unless worksheet G is used and they do crossmatch with local property tax records. It generally takes a year or two but they send out notices of adjustment with P&I and the taxpayers are never happy about it...........

As a side note, be careful about number of units in dwellings.... If it's registered as a 2 family (even if not rented) you can only claim 1/2 the taxes for the 40a deduction....

If at first you don’t succeed…..find a workaround

C

CAR11Author

Level 2

Thank you!

Skylane

Intuit Community Champion

YW

If at first you don’t succeed…..find a workaround

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