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New Member
posted Jun 6, 2019 1:56:45 AM

Federal Taxes ; deductions and credits. I took a HELOC on my primary residence in 2013 to buy a second vaca home; sold it in 2018. What property taxes do I report?

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New Member
Jun 6, 2019 1:56:47 AM

You can deduct property taxes paid in 2018 for the home that was sold.  If a property tax payment was allocated to you on the closing statement, you can include that amount as a deduction as well.

Property taxes paid for your main home, vacation home, or land are an allowable deduction if they are based on the assessed value of the property and the property is for your own personal use.

But, note that property taxes are an itemized deduction and will only make an impact on your return if you itemize your deductions, as opposed to taking the standard deduction.  Also, as part of the tax reform changes of 2018, there is a limit of $10,000 ($5,000 married filing separate) of state and local taxes that can be included in itemized deductions.