That is correct; I meant to state "The relative whose taxes
were paid does NOT have enough deductions to itemize..."

That said, the relative has expressed an interest in
repaying the debt and I would like to make the repayment
formal by issuing a loan agreement (we're thinking
36-months, no interest).

So, this raises a couple of new questions. First, can we
even consider this a loan for any future bad debt purposes
since the money was paid on their behalf before an agreement
was signed? Second, will we have to wait until the end of
the loan term (i.e., 36-mo...3 years...2009) before we can
report the bad debt as a capital loss?

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Bruce Raskin, CPA wrote:
- quote -

No note was signed. Since we do not expect to be repaid, I
would consider this a gift.

The relative whose taxes were paid does have enough
deductions to itemize, so I do not expect them to claim the
deduction.

===
Moderator: I think the OP meant "does NOT have".

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Glenn" <glennlray[at]ev1.net> wrote:

- quote -

It will not be deductible as taxes paid.

You can always treat the amount as a loan and have a
potential non-business bad debt if it not collected. Did you
get a note signed/ is it to a family member that may be
construed as a gift?

We need more facts.

--
Bruce Raskin, CPA, P.C.
Braskincpa[at]wbhsi.net
Tax and accounting Services
Chandler, AZ

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Glenn wrote:

- quote -

Only if your name is on the deed and you are responsible for
the tax.

Missy Doyle

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"Glenn" <glennlray[at]ev1.net> wrote

- quote -

Nope. You can only take the property tax deduction on
property tax that you have the legal obligation to pay.

Your relative can't take the deduction either, because,
while they have the legal obligation to make the payment,
you made it, not them.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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My wife and I paid property taxes on a home we do not own (a
relative's). We do not expect the taxes to be repaid to us.
Can we deduct the taxes we paid?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >