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Are property taxes deductible on my personal income tax return? |
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Homeowners are allowed to use the property taxes that they pay to reduce their income in a given tax year. These taxes are deducted on Schedule A of Form 1040, which requires the taxpayer to select the itemized deduction method instead of the standard deduction. If you purchased a home, you will be able to deduct the property taxes you paid -- refer to your closing statement for the exact figure. However, if the tax bill included a special assessment, this amount cannot be deducted as real estate taxes; the value of the assessment is added to the basis of your property. |
