How to Deduct Taxes for More Than One House for New Jersey Income Taxes
Real estate taxes can be deducted on a Schedule A on your federal income tax return. The Schedule A is used with the 1040 form in order to itemize deductions for individual taxpayers. For New Jersey state taxes, primary residences can be included on the state income tax return. Whether you own or rent your primary residence, in New Jersey you can deduct your paid property taxes or a portion of your rent as property taxes on your income tax return.
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Instructions
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Property Taxes for Homes You Own
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1
Write down the number of residences you lived in and owned during the tax year as a primary residence.
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2
Calculate how many days of the year you lived in each residence from Step 1. The total of all of these values may not exceed 365. If you have a combination of rented and owned primary residences, the combined values of time cannot exceed 365.
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3
Write down (as a decimal) how much of the property you owned, the share of the property you used as a primary residence if it is a multi-unit residence and the total property taxes paid for the property.
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4
Multiply the amount you paid in property taxes on homes you owned by the percent of the home used as your primary residence if the home had multiple units. If the home did not have multiple units, multiply the percentage of the home you owned by the property taxes paid. For homes you owned solely, this will be 100 percent ownership; when written as a decimal this is the value 1.0. Add these values for all homes listed from Step 1. Use this value on your New Jersey tax return.
Property Taxes For Homes You Rent
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5
Write down the number of residences you lived in and rented during the tax year as a primary residence.
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6
Write down the number of tenants who shared rent, total rent paid by all residents and total rent paid by you.
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7
Divide the total amount of rent paid by the number of people who shared the rent. Repeat this for every residence written down in Step 1. Add the values calculated in this step for all residences.
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8
Multiply the value found in Step 4, the total amount of your share of rent paid for all primary residences in the tax year, by 0.18. Use this value on your New Jersey tax return.
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1
Tips & Warnings
You cannot deduct taxes for more than one residence on your state taxes unless you lived in each home as a primary residence. However, you can claim property taxes on your federal return for a primary residence and secondary residence.
If you have a mixture of rented and owned properties, add both values to use on your New Jersey tax return.
There are certain eligibility requirements to claim property taxes on your New Jersey income tax return; read the instructions to determine your eligibility.
References
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