📝Real property taxes consist of ad valorem taxes and non-ad valorem assessments.
💵Ad valorem taxes are deductible, while non-ad valorem assessments are not.
📃Taxpayers need to review their property tax bill to determine deductible amounts.
🔢To calculate the deductible amount, taxpayers need to apportion the payment between ad valorem and non-ad valorem components.
⚠️The deduction for state and local taxes, including real property taxes, is limited to $10,000.
What are real property taxes?
—Real property taxes are taxes imposed on a property's value and levied for the general public welfare.
Are all property taxes deductible?
—No, only ad valorem taxes are deductible. Non-ad valorem assessments for local benefits are not deductible.
How do I determine the deductible amount?
—Review your property tax bill and calculate the apportionment between ad valorem and non-ad valorem components.
What is the limitation on deducting state and local taxes?
—The deduction for state and local taxes, including real property taxes, is limited to $10,000.
Can I deduct personal property taxes?
—Deductibility of personal property taxes depends on the state. In some states, it may be deductible based on the value of the property.
00:01This video explains how to report itemized tax deductions on Form 1040.
00:23Real property taxes consist of ad valorem taxes and non-ad valorem assessments.
02:44Ad valorem taxes are deductible, while non-ad valorem assessments are not.
03:44Taxpayers need to review their property tax bill to determine deductible amounts.
04:22To calculate the deductible amount, taxpayers need to apportion the payment between ad valorem and non-ad valorem components.
05:53The deduction for state and local taxes, including real property taxes, is limited to $10,000.
06:57Deductibility of personal property taxes depends on the state.
07:20The video concludes with a thank you message.
