Real Estate Tax Limitation
I seem to get this question a few times a week so I want to address it. The question usually relates to whether you can continue to deduct your real estate taxes on your farm land rental or farm business. The bottom line is yes, you will continue to deduct 100% of your business and rental real estate taxes.
The only change proposed by both the House and the Senate is to limit the itemized deduction for real estate property taxes on your home or other personal real estate to $10,000. For most farmers, their real estate tax on their personal residence is well under $10,000, so there should be no change for almost all farmers.
These new tax proposals are confusing and we will continue to provide guidance.