Do You Write Away Real Estate Taxes?
Real estate property taxes are taxes that you pay county your town or state each year. Property taxes in some countries, such as Texas, are incredibly high to compensate for the lack of state income taxation. Assuming a national income tax deduction for your property taxes, then, can provide a significant savings in your federal income taxation. The crucial question is if you itemize your tax deductions, since in the event that you claim the standard deduction you cannot write off your property taxes.
Deduct Real Estate Taxes
Obtain a copy of invoice or the regional tax assessment notice. The county will ship you a copy of this notice each year. This will inform you just how much you paid in property property taxation.
Identify the total amount you paid for your property property taxes. This may include taxes paid into the school district, town, county, town, and country where you reside. It also may include sums paid to smaller districts, such as water or sewer districts. Most neighborhood assessment notices show a total amount due and all you have to do is use that amount.
Insert the quantity of property taxes you paid in line 6 of IRS Form 1040, Schedule A.
Total IRS Form 1040, Schedule A with the rest of your itemized deductions.
Keep a copy of the cleared check you used to pay your property taxes. Provided that you’ve got that check in your files you’ll not have a problem justifying the deduction when the IRS audits you.