Property Tax Deduction
May 5th, 2009
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Question: Can a Person Take Their Parent’s Property Tax as a Deduction?
If you pay your retired parents’ property taxes, can you take it as a deduction on your federal income taxes?
Can this only be done if you pay more than 50% of your parents’ living expenses for the year?
Answer: I think you can only take the deduction if you can claim your parents as dependents, and that in turn is when you pay more than 50% of their expenses etc.
So, I think your parents will have to claim this as a deduction on their income tax return. Now, what I think you should do is “buy” the house from your parents. You don’t have to pay them full price etc. But than it will either be your second home or rental property, however you want to treat this. If this is a second home, you simply deduct mortgage interest (if any) and real estate tax. If this is a rental property, you will have to show rental payments from your parents, but every expense including light bulbs, landscaping, plumber or whatever becomes deductible as business expense. Most rental properties show as losing money on tax returns. Anyway, here are the ideas, think about them and see what’s appropriate for you.
Items on Amazon Right Now for Property Tax Deduction:
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Quicken Rental Property Manager 2011 – [Old Version] $66.99 Quicken Rental Property Manager 2011 includes all of the features found in Quicken Home & Business, plus smart tools for managing your rental properties. Always know how your home-based business is doing. Helps maximize deductions and simplify your taxes. Manage Your Personal, Business, and Rental Property Finances in One Place Organizes Your Finances All in One Plac… |
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Quicken – Rental Property Manager 2012 – Bulk Pack $149.99 The Quicken® Rental Property Manager 2012 from Intuit® makes it easy managing and organizing your personal and rental property finances, all in one place. This personal finance software helps you to identify tax-deductible rental property expenses so you can maximize your tax deductions. Additionally, it shows how your rental properties are doing and where you’re spending at a glance. Besides … |
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H&R Block At Home Premium + State 2011 Win [Download] $27.99 H&R Block At Home: Premium–Self-Employed/Rental Property Owners, Federal + State H&R Block At Home Premium is the right choice for those with more complex tax situations to easily complete their federal and state returns. It includes the H&R Block tax expertise you trust–plus H&R Block’s maximum refund guarantee. H&R Block At Home Premium includes everything you need to easily complete your fe… |
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TurboTax Deluxe Federal + e-File + State 2010 – [Old Version] $6.94 The Intuit TurboTax Deluxe Tax Year 2010 Software walks you through over 350 deductions including mortgage interest, charitable contributions, education, medical expenses and more. Audit Risk Meter™ helps you reduce your chance of an audit. ItsDeductible® helps you accurately value charitable donated items. The Intuit TurboTax Deluxe Tax Year 2010 Software also guides you through changes… |
Deadline for paying property taxes near
We have a quick reminder: it’s tax time for property owners who want to claim a deduction for 2009
Excerpts from Greenwald’s Floor Speech on the FY 2010 Budget (A-4100)
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