"Benjamin Yazersky CPA" <johndoe[at]nowhere.com> wrote:

- quote -

I do this on clients that hold property for investment
purposes but haven't done it for personal residence.

While the the home is the biggest investment in many
people's lives, it's a "personal" residence and I don't
think there's a good "investment property" argument,
especially if you're deducting mortgage interest on a
"qualified residence" rather than investment interest. This
does not imply that treating interest as investment would
convert the principal residence to investment property.

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"Benjamin Yazersky CPA" <john...[at]nowhere.com> wrote:

- quote -

I'm not certain this would affect capitalizing property
taxes but in a recent case, the IRS calculated the (property
and income) taxes as an addition on the 6251, taking the
position that it didn't matter whether the taxpayer claimed
them or not. Sorry, I don't have the reference handy.

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Benjamin Yazersky CPA wrote:

- quote -

My question is where in the code is this even permitted?

ChEAr$,
Harlan Lunsford, EA n LA

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When an individual taxpayer is in amt, frequently no benefit
will be had for deducting property taxes on the residence.

Has anyone had any experience in electing to capitalize the
property taxes, rather than taking a useless deduction? What
issues exist?

The only effect that I see is doing so will increase the
basis in the residence. But that may be moot if there is not
enough gain to generate tax on the sale.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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