I went to my tax guy this year and he never asked about my property tax. I am owing this year. Is there any *other* way that property tax can be deducted. He never asked me for how much I paid so I don't see how it could have been deducted.
2007-03-23 11:56:05 · 10 answers · asked by kgirl 2 in Business & Finance ➔ Taxes ➔ United States
I did itemize my taxes this year. My interest was deducted. I do freelance work and so we had to go through and itemize lots of things for deductions for that.
2007-03-23 12:03:54 · update #1
My property taxes are not taken out through oscrow.
2007-03-23 12:17:48 · update #2
You can file a 1040X to claim the real estate tax left off from last year. Real Estate tax goes on Schedule A unless it is a rental property, then Schedule E. Also, don't forget about sales tax. If you bought a vehicle, you can claim those taxes paid on Schedule A as well. Remember, itemized deductions are possible only if they exceed the Standard Deduction. You may need a new tax preparer.
2007-03-23 12:48:05 · answer #1 · answered by exirsman 5 · 0⤊ 1⤋
The reason your tax guy did not ask you whether you pay real estate taxes, is because he knows that you do not itemize. Real Estate Taxes are a Schedule A deduction, but only if your itemized deductions ie., RE taxes, sales taxes, state and local taxes withheld, mortgage interest, employee business expenses, exceed your standard deduction. If the total itemized deductions, exceed your standard deduction, then you can itemize.
The interest that was deducted on your return applies to the interest you paid on student loans, which is a Page 1 deduction. It is not an itemized deduction.
The only way property tax can be deducted other than itemizing it, is only, if you
"rent" out a portion of your personal residence. To the extent that the property is used for rental purposes, the Real Estate Taxes can be claimed as a Schedule E deduction.
2007-03-24 06:33:10 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋
Property taxes and mortgage interest are tax deductible if you itemize deductions. It's entirely possible that you don't have enough itemized deductions to make it worthwhile. If your itemized deductions are less than the standard deduction for your filing status, you should use the standard deduction.
Addendum: If you paid your property taxes directly your tax guy should have asked about them. He should prepare an amended return on Form 1040X. Since he messed up by not asking, he should do that without charge. It will take about 8 weeks to get the extra refund.
2007-03-23 12:00:43 · answer #3 · answered by Bostonian In MO 7 · 4⤊ 0⤋
If your taxes were paid by your mortgage servicer via an escrow account, the amount would be reported on the same form reporting interest paid. The preparer could have gotten the amount from that form. If that is the case, the amount should be shown on Line 6 of Schedule A-Itemized Deductions.
2007-03-23 12:14:58 · answer #4 · answered by sselfe 1 · 1⤊ 0⤋
Assuming that you actually did pay property taxes in 2006, yes, they are deductible. If you itemized and your preparer took real estate interest and didn't take property taxes, I'd find another preparer for next year. If your return for this year isn't filed yet, take it back to him along with your receipts for your real estate tax payments, and have him correct it - he should do that at no charge. And if it's filed already, take everything back and he should prepare an amended return for you at no charge. Since he knew that you own your residence if you itemized mortgage interest, he certainly should have asked if you paid any real estate taxes.
2007-03-23 14:28:19 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Yes your property taxes are deductible. You may want to amend your taxes and get a little more of a deduction to reduce the amount of tax you owe.
2007-03-23 13:23:38 · answer #6 · answered by Pamela G 2 · 0⤊ 1⤋
Your real estate taxes are deductible, in the year you paid them. And so are your personal taxes. And so are your personal property taxes.
2007-03-23 13:40:06 · answer #7 · answered by jeff410 7 · 0⤊ 0⤋
If your property taxes are paid through an escrow account attached to your mortgage, it should be listed on the 1098 from your mortgage company. If that is the case, your 'tax guy' may not have asked because you had already given him the information.
2007-03-23 12:11:05 · answer #8 · answered by STEVEN F 7 · 0⤊ 2⤋
it can't be deducted until you pay it because the deduction
is made for the year that you actually remitted the funds
(it is possible to deduct two years worth in one year)
2007-03-23 12:05:17 · answer #9 · answered by Anonymous · 0⤊ 0⤋
YES THEY ARE DEDUCTIBLE, YOU CAN GET AN AMENDED FORM. YOUR TAX GUY CAN DO IT FOR YOU AND SHOULDN'T COST YOU ANY EXTRA TO DO IT SINCE HE FORGOT TO ASK YOU ABOUT IT TO START WITH.
2007-03-23 13:18:49 · answer #10 · answered by Anonymous · 0⤊ 1⤋