What Can and Can’t be Included in Your Property Tax Deduction?
The property tax system in the United States is incredibly complicated, and most taxpayers are unable to understand or decipher why their property taxes increase every year. Ballooning property taxes are often the result of errors and inaccuracies on the part of county appraisers, which can be addressed with the help of a property tax attorney in Wichita . Still, you’ll have property taxes to pay each year. Fortunately, that means you’ll have property tax deductions as well. Read over this brief list of items that can be included in your property tax deduction and then consult with a property attorney to handle your property tax issues.
If you took out a mortgage to finance the purchase of your home, your house payments may include several other costs in addition to paying off the loan, many of which you can deduct from your income taxes at the end of the year. You can deduct real estate taxes paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums. If you receive a housing minister’s or military housing allowance, you can still deduct your real estate taxes and your home mortgage interest without needing to reduce deductions based on your non-taxable allowance.
As many deductions as you can take, there are even more costs that you cannot deduct as part of your property tax deductions . You cannot deduct insurance, including fire and comprehensive coverage. Depreciation is also not deductible, at least not on an individual tax return for private property. The cost of utilities such as gas, electricity, and water cannot be deducted, nor can most settlement costs or forfeited deposits or down payments. Contact a property tax attorney in Wichita for help maximizing your property tax deductions this year.