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How do you deduct property tax payments in the year you bought property?
Wiki User
∙ 11y ago
Like anything else, you apply the appropriate amount on the appropriate schedule when you file your tax return.
There are four types of deductible nonbusiness taxes:
- State, local and foreign income taxes;
- real estate taxes;
- Personal property taxes; and
- State and local sales taxes.
To be deductible, the tax must be imposed on you and must have been paid during your tax year. However, tables are available to determine your state and local general sales tax amount. Refer to Form 1040 Instructions for more information. Taxes may be claimed only as an itemized deduction on Form 1040, Schedule A.
Note it is the amount paid...not the amount that may have been charged. If your taxes are part of your mortgage, the amount the mortgage company estimates and charges monthly is different than the amount actually paid in that year. However, all you need to know about any taxes or interest charges will be provided by the mortgage company at the end of the year. Just use those values on your return. (If you use any of the popular tax return softwares, just follow the questions and answers....and if not...this is a great time to start)!.
Wiki User
∙ 11y ago
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Can a coporation deduct a lease payment?
Yes, corporations can deduct lease payments. Property lease payments and vehicle lease payments are deductible in the year paid or accrued.
Bought Home in Jun 2007 Paid Property tax for 2007 4000 in 2008 and 4000 for 2008 in 2008 Do you Deduct 8000 ie full 07 and full 08 or 6000 ie for half 07 and full 08?
You deduct the actual amount you paid in property taxes during calendar year 2008, no matter what year it was for. If you paid it in 2008, you deduct it in 2008. Of course, you subtract any amount that the previous owner reimbursed you at closing.
Can you Deduct tax payments from the previous year?
Yes, unless it's been past three years. They have five years to eat you alive though. For the previous year -as below...from the previous year (as in made then) - even if applicable, no, only in the year they are paid. File an amended. State Tax payments are deductible from Federal, when paid. Federal Tax Payments aren't deductible from State, or from Federal for that matter, regardless of when they are paid.
I had to pay money to state and federal last year. Can that money be claimed on this years taxes?
how much is $60 add tax You can deduct the 2009 State Taxes you paid in 2010 on Schedule A (if you itemize). Federal tax payments are not deductible according to the IRS Website
Can you deduct lost wages on your taxes due to caring for ill parents?
No. Just to start, you can't deduct income you didn't make or report. There is a lot of money I didn't make last year....I didn't win the $100,000,00 lottery..so while I didn't report it or pay taxes on it (I could)....I certainly can't deduct it. The lottery example is inapplicable to this question. Although the answer (No, you can't deduct lost wages) is correct, lottery winnings are not wages.
Can a coporation deduct a lease payment?
Yes, corporations can deduct lease payments. Property lease payments and vehicle lease payments are deductible in the year paid or accrued.
How do you deduct property tax payments from your federal income taxes in a year when you both sold and bought property in Illinois?
For the property you sold, you may have property taxes you already paid that year before the sale. Additionally, you will give the buyer a credit for property taxes accrued up to the date of the sale. Deduct both of these amounts. For the property you purchased, you may pay property taxes after the purchase. The seller gave you a credit for the taxes due up to the date of purchase. Deduct the credit from what you paid. If any remains, you may deduct it on Schedule A. If the credit is for more than you paid, you should carry the remaining credit forward to the next year and deduct it from what you paid. Many accountants will simply deduct the entire credit from all of the payments in the same year. While this is technically incorrect, it is easier, and eliminates the likelihood you will forget to carry the remaining credit forward. I've never had the IRS object to this treatment. Example: Paid property tax in June $2,000 Sold property in July, gave buyer credit 4,000 Bought property in July, got seller credit -5,000 Paid property tax in September 2,500 Total paid during year is $2,000 + 4,000 + 2,500 - 2,500 (credit) = $6,000 and carry a $2,500 credit from buyer to next year, or Total paid during year is $2,000 + 4,000 + 2,500 - 5,000 (credit) = $3,500 and no credit carried forward.
If you pay your California property tax in April and December how do you take the deduction?
If you are an individual taxpayer, add together all of the property tax payments you actually made during the calendar year and enter the total on federal Schedule A on the line that says "Real Estate Taxes." Include only payments you actually made during the year. If you make a payment late, deduct it in the year you paid it, not in the year it was due.
Bought Home in Jun 2007 Paid Property tax for 2007 4000 in 2008 and 4000 for 2008 in 2008 Do you Deduct 8000 ie full 07 and full 08 or 6000 ie for half 07 and full 08?
You deduct the actual amount you paid in property taxes during calendar year 2008, no matter what year it was for. If you paid it in 2008, you deduct it in 2008. Of course, you subtract any amount that the previous owner reimbursed you at closing.
What strategy do I use to answe Felice bought a duplex apartment at a cost of 245000. Her mortgage payments on the property are 1040 per month. Her real estate taxes total 1632 per year and insurance?
Felice bought a duplex apartment at a cost of $245,000. Her mortgage payments on the property are $1,040 per month. Her real estate taxes total $1,632 per year, and insurance costs $1,476 per year. She estimates that she will spend $1,236 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. Ignore income taxes, changes in equity value, and changes in property value.
Can you Deduct tax payments from the previous year?
Yes, unless it's been past three years. They have five years to eat you alive though. For the previous year -as below...from the previous year (as in made then) - even if applicable, no, only in the year they are paid. File an amended. State Tax payments are deductible from Federal, when paid. Federal Tax Payments aren't deductible from State, or from Federal for that matter, regardless of when they are paid.
Is a lease on a Nissan 350z cheaper than buying it?
Well, at first it may be cheaper than making monthly payments, but after a year or two, your payments are for nothing, as you've got nothing to show for it where as if you bought the car, it would be yours after the payments.
Caleb bought a car for $6,900. He agreed on a five- year loan at a 5.4% interest rate. Calculate what Caleb’s monthly payments will be?
$131.48
Can you deduct your sons college tuition?
Type your answer here... can you deduct your college student from your income tax if he makes $15000 a year as a coop
If you make double payments for a year for the next year will you be required to make normal payments or can you get away with making no payments until the 3rd year?
You cannot skip a year even if you made double payments for the first year, the bank considers those payments extra and hopefully you made sure the payments went to the principle, not the interest.
You just bought a 15000 diamond ring on credit no payments for 1 year Now you are filing bankruptcy Do you get to keep the ring?
no if you still have it yes if you gave it to someone as a "gift"
I had to pay money to state and federal last year. Can that money be claimed on this years taxes?
how much is $60 add tax You can deduct the 2009 State Taxes you paid in 2010 on Schedule A (if you itemize). Federal tax payments are not deductible according to the IRS Website
