Deducting Real Estate Taxes: A How-To Guide
By Robert D. Flach
Editor's Note: This article is part of our 2014 Tax Tips series. Robert Flach is an expert with more than 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.
NEW YORK (MainStreet) You can deduct on Schedule A the municipal, school and county, and state and foreign, real estate taxes, based on the assessed value of real property (land and "improvements"), that you paid during the year - whether you sent the check directly to your township, municipality or county, or whether the taxes were paid out of a mortgage escrow account. There is no limit to the number of properties for which you can claim a deduction.
Charges for specific services, such as trash collection or water and sewer usage, are not deductible as real estate tax. Neither are special assessments for capital improvements that increase the value the property, like a new sidewalk. But you can deduct additional assessments to maintain public facilities, such as to repair existing sidewalks.
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