A Good Thing About Property Taxes

I read something today that mentioned that there are only 11 Fridays left in 2016 before the New Year 2017 will be here.  WOW!  Before you know it, it will be tax season again.  YAY(sarcasm enter here, lol)!!

Homeownership has many benefits and a few of those can be capitalized on when you file your taxes.  Most homeowners are aware of the mortgage interest deduction but did you know that you can deduct paid property taxes for that tax year as well??  Yes, all of the property taxes you pay for a given tax year can be claimed as a deduction.  (Property taxes can only be claimed as an itemized deduction on form 1040, Schedule A.) 

So what about homeowners who pay their monthly portion of property taxes to lender via escrow account?  Yes, you can still use what you pay for property taxes as a deduction.  The amount you pay into escrow account every month may not reflect property taxes alone so check your tax bill if you are unsure of the exact amount paid to taxing authority for that tax year.

Consult with a CPA or tax preparing professional to find out what deductions you qualify to take and other tax related questions.

Source:  www.irs.gov/taxtopics