GraceNY Posted April 1, 2010 Report Share Posted April 1, 2010 I know real estate taxes are deductible for all property owned by a taxpayer. I have a client that deducts real estate taxes for his primary residence and 2 secondary residences (camp and condo). Last year it came to his attention that his daughter has not been paying the taxes on her own home and she was in jeopardy of losing it. He had his daughter transfer (deed) the property to him and he then paid the city all the taxes due...$27,000. My question is whether or not he can deduct these real estate taxes? I'm inclined to think not if this is analogous to the "Sale of Real Estate/Buyer-Paid Taxes" wherein the buyer can't deduct the delinquent taxes of the seller and those taxes must be added to the basis. ??? Grace Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 1, 2010 Report Share Posted April 1, 2010 I thought you could only deduct RE taxes on schedule A for the primary and secondary home. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 1, 2010 Report Share Posted April 1, 2010 That's mortgage interest that's limited to two homes. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 1, 2010 Report Share Posted April 1, 2010 You are correct, Grace. Those were not his taxes, they just add to his basis in the house. Quote Link to comment Share on other sites More sharing options...
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