Questions on Schedule A Tax Deductions

"nish" wrote

You have to draw lines somewhere. That's where Congress drew the line this time. At one time, eons ago it seems, they allowed deductions for taxes on tobacco products and other items. One day, years from now, we'll stand in awe of the deductions that were allowed and the credits that were available in 2007, and we'll proclaim these years "the good old days".

Not for federal purposes. You have to own the property and be liable for the tax to be able to deduct it. Some states allow a deduction, as a percent of rent paid, toward a property tax credit or deduction. But to deduct that, you have to have made the rent payment and not just lived there with a friend.

Maybe.

They mean a lot to those who AMT does not impact.

No. It's one or the other. It was added to try to create some parity for those states where there is no state income tax. However, you're free to claim whichever of these two items is more.

No. You cannot deduct someone else's property tax. You may also have a gift tax issue should the amount be over $12k.

It means alot to those NOT subject to AMT.

You are confusing Line 7 personal property with Line 6, real estate taxes. The instructions for line 6 do state you have to own the property.

Personal property tax, on line 7, is ad valorem tax such as the portion of your vehicle registration that is based on the value of your vehicle. You're right, the instructions don't specify you have to own the property.

-Mark Bole

This came up in another thread relating to real property taxes. I stated then that there is a general rule (I don't have the citation) that says a taxpayer can not take a deduction for the payment of the expenses of another individual unless specifically identified in the code. E.g., medical expenses incurred for a dependent or spouse. Basically, the expense must be incurred for the taxpayer's benefit or originate from that taxpayer's obligation. It's one of the disallowance rules.

Thanx for the clarification. I was agreeing with OP about what the instructions in the IRS pub said, but it wouldn't occur to me to deduct the tax on property not also owned.

I am also aware of the issues of equitable ownership vs. legal ownership, I think that came up in the same earlier thread. I suppose that would apply to personal property tax as well as real property tax.

-Mark Bole

=============At one time you could even deduct liquor tax if the tax was levied in a certain way; i.e. on the consumer rather than the seller. Another favorite was the "pole" tax. There used to be a $ 1.50 State and

Are you speaking of deducting liquor tax on the federal return? If so, how long ago WAS that? Sounds like before my time.

ChEAr$, Harlan Lunsford, EA n LA