21 Mar Can I deduct out-of-state property taxes on my N.J. return?

Q. Can I deduct out-of-state property taxes on a summer-only cottage my New Jersey tax return? TurboTax shows yes, but I’ve seen conflicting information. I just want to do the right thing.
— Taxpayer

A. The new tax plan changed the way property taxes can be deducted.

Property tax is deductible on all homes for federal purposes, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

But now, they are subject to the $10,000 limit on state and local taxes.

After the feds limited those taxes to $10,000, New Jersey took some steps to increase what you can deduct for your state return, but not for a second home.

For New Jersey purposes, you can deduct up to $15,000 for your primary residence in New Jersey, Kiely said.

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This story was originally published in March 2019.

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