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jeffrey-pitas
New Member

I purchased a vacation property, it was a tax foreclosure. I had to pay outstanding property taxes for current and previous year when I purchased home. Is this deductable

 
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MichaelL1
Level 15

I purchased a vacation property, it was a tax foreclosure. I had to pay outstanding property taxes for current and previous year when I purchased home. Is this deductable

The current year property taxes are deductible on the 2nd home.  You go to Deductions and Credits to the Your home section and enter them there.

The property taxes paid for the home that was for the previous year, are not deductible as they were not your taxes.  They are however part of the cost of buying the home and are added to your cost (or basis in the vacation home). 

If you agree to pay the seller's delinquent taxes from an earlier year at the time you close the sale, you are not permitted to deduct them on your tax return. This payment must be treated as part of the cost of buying the home, rather than as a property tax deduction.

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1 Reply
MichaelL1
Level 15

I purchased a vacation property, it was a tax foreclosure. I had to pay outstanding property taxes for current and previous year when I purchased home. Is this deductable

The current year property taxes are deductible on the 2nd home.  You go to Deductions and Credits to the Your home section and enter them there.

The property taxes paid for the home that was for the previous year, are not deductible as they were not your taxes.  They are however part of the cost of buying the home and are added to your cost (or basis in the vacation home). 

If you agree to pay the seller's delinquent taxes from an earlier year at the time you close the sale, you are not permitted to deduct them on your tax return. This payment must be treated as part of the cost of buying the home, rather than as a property tax deduction.

View solution in original post

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