Property Taxes

Real estate taxes are generally deductible as an itemized deduction on schedule A.

No. The Assessment payments you paid your homeowner's association for maintaining common areas of the residential property, such as recreation or safety, are not deductible. Amounts paid are added to the tax basis of the home. The tax basis will be used in the year of the sale to determine the gain or loss on sale.

No. Legal fees incurred in reducing an assessment on property are not deductible.

Personal property taxes based on the value of your house and imposed on a yearly basis are deductible as an itemized deduction. Personal property taxes based on some other criteria, such as weight or size of a car, are not deductible.

Generally, you can only deduct real estate taxes on real estate which you own and therefore have an obligation to pay. Therefore, if you pay your parent’s real estate taxes on their home, wit title in their name, you will not be allowed to deduct those real estate taxes on your income tax return. If you would like to deduct these taxes, you will have to be put on the title.