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New Member
posted Dec 19, 2022 1:17:00 PM

Can I subtract the property taxes included in my rent when I live in a nonprofit retirement community?

I am in the independent living section in my community.

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1 Replies
Level 15
Dec 19, 2022 2:26:07 PM

No, not on your federal tax return. In order to deduct property taxes, you must be the owner of the property against whom the taxes are assessed. If you are a condominium owner, you can deduct the property taxes that you pay for your own property plus your portion of the shared property, assuming that you get a statement from the condominium association specifying what your taxes are. But if you are a tenant, you can’t deduct property taxes even though part of your rent is used by the landlord to pay their taxes. 

 

Your state may have a tax benefit that applies to your situation. For example, New York state has a Real Property Tax Credit that returns a portion of property taxes to low income taxpayers.  Renters are allowed to qualify for this credit with the assumption that 25% of their rental payment is applied toward taxes.  But this is not an itemized deduction for property taxes, rather a special credit available for some low income tax payers.  If your state has a renters credit or a homestead credit or something similar, you may qualify. You would have to review the tax laws of your state.