what items can be claimed as personal property taxes?

Question

I know there are 2 types of property tax, real and tangible, but If ive made home improvements such as roofing, flooring and driveway. Im wondering if that can be written off?

Answer 1

Personal property tax is deductible if it is a state or local tax that is:

Charged on personal property,

Based only on the value of the personal property, and

Charged on a yearly basis, even if it is collected more or less than once a year.


A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways.

If the tax is partly based on value and partly based on other criteria, it may qualify in part

The items that you described do not qualify as personal property tax
Home improvements are not deductible on the Federal Tax return
they can be included in the basis of your home when you sell the property

Publication 17
http://www.irs.gov/publications/p17/index.html

Answer 2

You did some improvements to your home. When your real estate taxes, either paid to the city/town or the county, increase because of these improvements, you will be able to deduct the tax increase then. You cannot deduct the cost of the improvements. They are not taxes paid.

If you were to sell the property with 2 years of purchase, and had to pay capital gains tax, the cost of the improvements could be used to lower the profit on the house, effectively lowering the taxes you would be responsible for.

Answer 3

Actually, there are two types of PROPERTY taxes. Personal (sometimes called tangible) and real. Property taxes (real or personal) that are based on the value of the property are deductible.

Improvements to real property will eventually affect the appraised value and therefore the property tax bill.

Home improvements can also be used to adjust your cost basis of the property and therefore will reduce the gain on sale. They cannot be otherwise deducted, however.

If you itemize and choose to deduct the State Sales Tax instead of the State Income Tax, any sales taxes that you paid directly out of pocket on the improvements are deductible. Sales tax paid by the contractors are not deductible by you.

Answer 4

Property tax is property tax. (i.e. taxes levied by the local or state government).

Re: federal tax on real estate
1. Capital Gains tax on profit made when a property is sold. %age varies depending on how long property was held, if owner occupied, or residential investment property.

2. Homeowner's get tax deduction for mortgage payments/house payments. Generally, home improvements are not deductible.
However, the cost of improvements may be used to reduce the amount of capital gain when the property is sold.

For residential investment property, improvements can be written off according to a depreciation schedule. Talk to a CPA or enrolled agent for more information.

There are 2 types of property: real property and personal property.

Real property is land, house w/ permanent fixtures (wall to wall carpeting, built in cabinets, things attached to the structure) and anything appurtenant to the land.

Personal property is anything that is not real property. It can be moved (furniture). Examples: money, jewelry, autos, clothing, books, etc.

Some useful links:
http://www.irs.gov/
http://www.nolo.com/

You should consult a tax professional &/or a real estate professional.

Information provided is for reference only and is not intended to be taken as advice.

Answer 5

Home improvements are not "property taxes" in the lease bit and are not deductile whatsoever.

Answer 6

tractors , cattle