No rent is collected on my parents home if this makes a difference. Also, I'm already claiming a deduction on the property taxes I paid for my primary home.
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Yes, you may deduct the property tax as an itemized deduction since it is only being used for personal use. Please see the FAQ below for more information.
Can I deduct real estate tax? https://ttlc.intuit.com/replies/3300663
I have the same situation, except I have a small mortgage on my parent house, that I pay. I did as the turbo tax response said. Now however I need to sell the house and by them a smaller condo, I plan to roll the profits from this home into the condo. My real estate agent suggested doing a 1031 exchange tp ease the capital gains. But I don’t have the property listed as an investment property. Would it still be eligible? Or will I just owe the capital gains even though I am reinvesting?
If this was never a RENTAL property then a 1031 exchange would not be appropriate ... so if this was a second home that you let your parents live in you will have a reportable sale on which capital gains will be taxed. Purchasing another property with the proceeds of the sale are immaterial.
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