Phillip1
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Deductions & credits

No. Real estate taxes are only deductible by a taxpayer who pays the tax and is legally required to pay the taxes. Since the home is in your mother’s name, you do not meet the requirement that you are liable for the property tax.

From IRS Publication 530:

You can deduct real estate taxes imposed on you. You must have paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year. Click here for the full explanation in IRS Publication 530.

You could have your mother transfer title to you so that you can claim the property taxes as a deduction on your tax return in future years. However, there is one major reason why continuing with the title in your mother’s name might be the best idea.

  • If the home remains in your mother’s name until she passes away (assuming the home is willed to you out of her estate) the cost basis of the home will jump to the fair market value of the home on the day that she passes away. This could save you a great deal in taxes in the future when you sell the home.

  • Conversely, if the home is transferred to your name while your mother is alive as a gift, your cost basis would be the amount she paid for the home. If the home was bought several years ago, this would leave you with a very small cost basis and a large gain if you sell the home.

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