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Property Tax Deductions
Property Tax Deductions are two of the five non business taxes that are deductible. They include Real Estate Property Taxes and Personal Property Taxes.
To take advantage of property tax deductions, the tax must be imposed on the homeowner and must have been paid during the tax year.
Real Estate Property Taxes
Property tax deductions include any state, local, or foreign taxes on real property. They must be charged uniformly against all property in the jurisdiction and must be based on the assessed value.
Personal Property Taxes
Personal property tax deductions are those based only on the value of personal property such as a boat or car. The tax must be charged to you on a yearly basis, even if it is collected more than once a year or less than once a year.
Many states and counties also impose local benefit taxes for improvements to property, such as assessments for streets, sidewalks, and sewer lines. These property taxes deductions are not deductible. However, you can increase the cost basis of your property by the amount of the assessment. Local benefits taxes are deductible if they are for maintenance or repair, or interest charges related to those benefits.
Property tax deductions are entered on Form 1040 on Schedule A.
Check Rental Property Tax Deductions on more tips regarding property tax deductions
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Property Tax Deductions is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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