Deductibility of taxes on someone else's property?

#14 01-12-2004, 10:57 AM

Arthur L. Rubin wrote:
- quote -

> Harlan Lunsford wrote:

> > Also I think to qualify to the "production of income" reason
> > to work, it must be for the production of *current* income.

> In the specific case in question, I don't think it's
> deductible. However, legal expenses to protect ownership of
> property are deductible somewhere, aren't they? Or are they
> just capitalized?

From the facts in this case, neither. Proper place for
deduction is only on mother's schedule a, IF she files and
itemizes. And since it's personal use property, her personal
residence, real estate taxes are not added to basis of the
property.

Like the old song says, "It's Nowwwww... or never....."

Cheer$,
Harlan Lunsford, EA n LA

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#13 01-11-2004, 10:49 AM

Harlan Lunsford wrote:
- quote -

> Arthur L. Rubin wrote:

> (sbnipped)
> > At best, that would be "expenses for the preservation
> > of capital or for production of income", making it
> > deductible as a miscellaneous deduction, rather than
> > as taxes....

> Hmmm. "preservation of capital".. Does that phrase
> appear anywhere in the code?

OOPS -- no.

- quote -

> Also I think to qualify to the "production of income" reason
> to work, it must be for the production of *current* income.

In the specific case in question, I don't think it's
deductible. However, legal expenses to protect ownership of
property are deductible somewhere, aren't they? Or are they
just capitalized?

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#12 01-10-2004, 08:22 AM

Seth Breidbart wrote:
- quote -

> Dick Adams <rdadams[at]smart.net> wrote:
> > Jack Hamilton wrote:

> > > While my mother was in the hospital recently, I paid her
> > > property taxes, which had come due. I don't expect her to
> > > repay me.
> > > > > Are these tax payments deductible on my income taxes, as
> > > payments on my own property taxes would be? My mother does
> > > not have enough income to file an income tex return.

> > My response is "probably not". Now if you are going to
> > inherit her property, you could put forth the argument
> > that you had a sufficient interest in the property to
> > warrant the deduction. But I don't know of a precedent
> > that justify such a position.

> My guess would be there's a better claim to add that tax
> payment to the cost basis.

That only works if it's currently investment property in the
hands of the owner. This seems to be personal use property.

Cheer$,
Harlan Lunsford, EA n LA

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#11 01-10-2004, 08:22 AM

Arthur L. Rubin wrote:

(sbnipped)> At best, that would be "expenses for the preservation
- quote -

> of capital or for production of income", making it
> deductible as a miscellaneous deduction, rather than
> as taxes....

Hmmm. "preservation of capital".. Does that phrase
appear anywhere in the code?

IMWTK

Also I think to qualify to the "production of income" reason
to work, it must be for the production of *current* income.

cheer$,
Harlan Lunsford, EA n LA

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#10 01-09-2004, 05:33 AM

Dick Adams <rdadams[at]smart.net> wrote:
- quote -

> Jack Hamilton wrote:

> > While my mother was in the hospital recently, I paid her
> > property taxes, which had come due. I don't expect her to
> > repay me.
> > > Are these tax payments deductible on my income taxes, as
> > payments on my own property taxes would be? My mother does
> > not have enough income to file an income tex return.

> My response is "probably not". Now if you are going to
> inherit her property, you could put forth the argument
> that you had a sufficient interest in the property to
> warrant the deduction. But I don't know of a precedent
> that justify such a position.

My guess would be there's a better claim to add that tax
payment to the cost basis.

Seth

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#9 01-09-2004, 05:33 AM

Dick Adams wrote:
- quote -

> Jack Hamilton wrote:

> > While my mother was in the hospital recently, I paid her
> > property taxes, which had come due. I don't expect her to
> > repay me.
> > > Are these tax payments deductible on my income taxes, as
> > payments on my own property taxes would be? My mother does
> > not have enough income to file an income tex return.

> My response is "probably not". Now if you are going to
> inherit her property, you could put forth the argument
> that you had a sufficient interest in the property to
> warrant the deduction. But I don't know of a precedent
> that justify such a position.

At best, that would be "expenses for the preservation
of capital or for production of income", making it
deductible as a miscellaneous deduction, rather than
as taxes....

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#8 01-07-2004, 03:55 AM

No. You have no legal obligation to pay the tax. Your
payment is a gift to your mother, nice but not deductible.

Nan, EA in LA

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#7 01-07-2004, 03:17 AM

Jack Hamilton <jfh[at]acm.org> writes:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be?

No. For them to be deductible you must both be legally
responsible for and pay them.

Phil Marti
Topeka, KS

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#6 01-07-2004, 03:17 AM

Jack Hamilton wrote:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be? My mother does
> not have enough income to file an income tex return.

My response is "probably not". Now if you are going to
inherit her property, you could put forth the argument
that you had a sufficient interest in the property to
warrant the deduction. But I don't know of a precedent
that justify such a position.

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#5 01-07-2004, 03:17 AM

Jack Hamilton wrote:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be? My mother does
> not have enough income to file an income tex return.

Unless, you're on the title, no.

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#4 01-07-2004, 03:17 AM

Jack Hamilton wrote:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be? My mother does
> not have enough income to file an income tex return.

No. You were not liable for them - your mother was. Watch
out for gift tax.

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#3 01-07-2004, 02:57 AM

- quote -

> I paid her property taxes, which had come due.
> I don't expect her to repay me.

NOT deductible to you, unless you were legally
obligated to pay them.

Hint, change things for the future.

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#2 01-07-2004, 02:57 AM

Jack Hamilton <jfh[at]acm.org> wrote:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be? My mother does
> not have enough income to file an income tex return.

No deduction. It's not your liability or your property. Just
a gift to mom.

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#1 01-07-2004, 02:38 AM

Jack Hamilton <jfh[at]acm.org> writes:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be?

No.

For a person to deduct the tax payments, both
conditions must be true:
1) The person is liable for the tax.
2) The person pays the tax.

You don't get to deduct the tax payment because
you fail the first condition. And your mother
doesn't get to deduct it (even if she had enough
income to pay tax) because she fails the second
condition. In other words, in your scenario, the
deduction is lost.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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01-07-2004, 02:19 AM

Jack Hamilton <jfh[at]acm.org> writes:

- quote -

> While my mother was in the hospital recently, I paid her
> property taxes, which had come due. I don't expect her to
> repay me.
> Are these tax payments deductible on my income taxes, as
> payments on my own property taxes would be? My mother does
> not have enough income to file an income tex return.

Only the owner of record may deduct the taxes. However, if
your mother doesn't have sufficient income to file a tax
return, perhaps you can qualify to claim an exemption for
her. If you provide more than 1/2 her support and she does
not have income of more than $3050 for 2003 (don't count
Social Security), it is likely you can claim her.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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#-1 01-05-2004, 12:21 AM

While my mother was in the hospital recently, I paid her
property taxes, which had come due. I don't expect her to
repay me.

Are these tax payments deductible on my income taxes, as
payments on my own property taxes would be? My mother does
not have enough income to file an income tex return.

--
Jack Hamilton
jfh[at]acm.org

If men are to wait for liberty until they become wise and
good in slavery, they may indeed wait forever.
- Lord MacCaulay

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