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Level 1
posted Jun 4, 2019 8:10:31 PM

Line 6 of schedule A includes property tax of primary residence as well as property tax of investment property?

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1 Best answer
Level 15
Jun 4, 2019 8:10:33 PM

Schedule A  allows only property taxes for  main residence and one 2nd / vacation home. Rental property accounts for property taxes  on schedule-E. Other investment property such as land  includes the property taxes etc. under suspended losses to be reconciled  when the property is disposed off  ( behaves like a change in  adjusted basis )

4 Replies
Level 15
Jun 4, 2019 8:10:32 PM

A rental property?

Level 15
Jun 4, 2019 8:10:33 PM

Schedule A  allows only property taxes for  main residence and one 2nd / vacation home. Rental property accounts for property taxes  on schedule-E. Other investment property such as land  includes the property taxes etc. under suspended losses to be reconciled  when the property is disposed off  ( behaves like a change in  adjusted basis )

Level 9
Jun 4, 2019 8:10:35 PM

Mortgages are limited to 2 residences, but you can deduct unlimited Real Estate taxes.

If "investment property" means rental property, those taxes go on Schedule E.

If it is just vacant land held for investment, I think you need to file an election to add the taxes to Basis.
<a rel="nofollow" target="_blank" href="https://www.law.cornell.edu/cfr/text/26/1.266-1">https://www.law.cornell.edu/cfr/text/26/1.266-1</a>

Level 15
Jun 4, 2019 8:10:36 PM

I stand corrected for tax year 2017 but 2018  is expected to be very different