{"id":2681,"date":"2022-09-15T12:26:34","date_gmt":"2022-09-15T12:26:34","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=2681"},"modified":"2022-09-15T12:26:36","modified_gmt":"2022-09-15T12:26:36","slug":"how-to-deduct-real-estate-taxes-on-your-federal-tax-return","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/how-to-deduct-real-estate-taxes-on-your-federal-tax-return\/","title":{"rendered":"How to Deduct Real Estate Taxes on Your Federal Tax Return"},"content":{"rendered":"\n
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Owning a home comes with a ton of benefits and one of those is your ability to deduct real estate taxes on your federal tax return. The savings may not stop there, in many cases you can also deduct the taxes paid on certain personal property types such as boats, cars or recreational vehicles.<\/p>\n\n\n\n

We thought it might be helpful to have a look at the property tax deduction and how you can claim it at tax time.<\/p>\n\n\n\n

What is a property tax deduction?<\/strong><\/h2>\n\n\n\n

States, cities and counties all levy property taxes on the various types of property that you own, this can include real estate, boats, vacation homes, recreational vehicles as well as land that is sitting empty. <\/p>\n\n\n\n

Many of these taxes can be deducted from your federal taxes, including any taxes that may have been paid when closing on the sale or purchase of a property. <\/p>\n\n\n\n

However, if you are buying a home that has a tax lien on it and you are paying off the delinquent taxes, you cannot deduct these expenses from your taxes, they are considered part of the cost of purchasing the home<\/a> and not a property tax expense.\u00a0<\/p>\n\n\n\n

When it comes to the amount you can deduct, it is only the amount of your escrow account that your bank reports to the IRS<\/a>, this is due to the fact that your escrow account is adjusted on a year basis and in most cases the amount changes year to year.\u00a0<\/p>\n\n\n\n

What property is eligible for the deduction?<\/strong><\/h2>\n\n\n\n

There are a number of different types of property that are tax deductible:<\/p>\n\n\n\n