Doc stamps are not deductible.

There is a disconnect between the IRS definition of a
(deductible) personal property tax and the State of Florida
collecting an "intangible personal property tax" on debt
secured by lien or mortgage on real property.

The IRS defines deductible personal property taxes as "those
based only on the value of personal property such as a boat
or car. The tax must be charged on a yearly basis ..."

http://www.irs.gov/taxtopics/tc503.html

Well, the Florida tax is nonrecurring, and it is not a tax
based on the value of personal property. The fact that
Florida calls it a personal property tax does not seem
sufficient to satisfy the IRS criteria.

I have deducted this tax in the past, and would be prone to
deduct it until told otherwise, except I doubt it would pass
the "reasonable position" test soon to go into effect. And
I regret my inability to devise a "simple Google search" to
discover a definitive answer.

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On Nov 5, 12:48 pm, Brew1 <brew....[at]gmail.com> wrote:

- quote -

We report it on Line 8, Schedule A - Other Taxes and
identify as such.

Gulf coast of Florida.

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Brew1 wrote:

- quote -

Well, a mortgage is an intangible, so I can see how you call
it that. anyway,.....

It's not a property tax. That is one assessed ON the
property. A mortgage note is not the property, which is
tangible, therefore the mortgage is an intangible. Which
brings us back to square one.

ChEAr$,
Harlan Lunsford, EA n LA

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Brew1 wrote:

- quote -

Not to belabor the subject, but the quotation describes the
documentary stamp tax quite accurately .

The deductibility question can be answered via a simple
Google search.

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Harlan Lunsford wrote:

- quote -

(snipped...)
- quote -

Can't say whether or not that LaRouche stuff has tainted the
red suspender boys in Hotlanta or not. But I did hear the
presentation by Georgia House speaker (forget his name right
now) about a month ago, and frankly, I don't think he
convinced the majority of us attending.

For further discussion, see
http://ezinearticles.com/?Property-Tax-Reform&id=734829

ChEAr$,
Harlan

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- quote -

Thanks for that, Bill. That long ago, huh? seems like only
yesterday. Your hard drive must be getting full to keep all
those NooYAWKer times articles for reference. (grin)

What WOULD we do without..... ohnevermind.

ChEAr$,
Harlan

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Stuart A. Bronstein wrote:
- quote -

It got "retracted."

It's interesting now in Georgia, for there is a proposal to
abolish property taxes in toto. Georgia would therefore be
the first state to do so. To compensate for the revenue,
the sales tax base would be broadened AND a tax on services
would be put in place, just like the Florida experiment.

I doubt that it will pass, right Paul?

ChEAr$,
Harlan Lunsford, EA n LA

Moderator:
I have a real problem with abolishing property taxes as
they are what is suppose to fund K-12 education, police
and fire departments, and sanitation (water, sewer, and
and garbage collection.

If there was ever a tax break for those living in expensive
houses, landlords, and corportaions and shifting the tax
burden to renters and the poor, this is it! Please keep
in mind that it is against my religion to raise taxes and
to shaft the labor class. Has LaRouche Movement taken over
the Georgia Legislature?

BTW: I will not be able to tack on responses when we go to
robo-moderation.

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Stuart A. Bronstein wrote:
- quote -

As far as I know, there is currently no Florida sales tax on
professional services. It comes up almost annually as a part
of "sales tax reform" -- which does not happen.

In 1987, the legislature did pass a law that subjected
professionals, advertisers and others to Florida sales tax
wherever in the US they were located. It was so bizarre that
I can only refer you to a NY Times article from that time.
(see below) Objections and threatened and actual boycotts
were so strong that the law was repealed a few months later.

http://tinyurl.com/3yoj8z
or
http://snipurl.com/1t4um

Bill

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I am not confusing the doc stamp with the remnants of the
Florida intangible tax. To quote from the Florida Dept of
Revenue:

The repeal [of the Annual Intangible Personal Property Tax]
DID NOT include:

The nonrecurring tax on a note, bond, or other obligation
for payment of money that is secured by a mortgage deed or
other lien on real property...

http://dor.myflorida.com/dor/tips/tip07c02-01.html

It is paid on certain refinancing, home equity loans, etc.
and is a separate line on the HUD form

So I will repeat my original question, is this a personal
property tax? Should it be deducted on Schedule A?

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William Brenner <wbrenner[at]nospamplease.net> wrote:

- quote -

I remember several years ago when Florida either enacted or
threatened to enact a sales tax on professional services.
What's the status of that?

Stu

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William Brenner wrote:
- quote -

To clarify: The documentary stamp tax is a one time charge
on registered documents such as those listed above, among
others. The tax rate ranges from $.35 to $.70 per $100
valuation depending on the document type. For more
information, see:

http://dor.myflorida.com/dor/taxes/doc_stamp.html

Bill

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

True the Fla intangible tax on stocks and bonds, etc. has
been repealed, BUT there still is an intangible tax charged
of about 1% of the mortgage value.

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Benjamin Yazersky CPA wrote:
- quote -

Brother Yazersky is correct, thanks to former Governor Jeb.

It is hard to tell, but the OP _might_ be confusing the late
unlamented intangible personal property tax with the Florida
Documentary Stamp Tax, which applies to mortgages, liens,
bonds, deeds, loans and other forms of indebtedness. I
suppose it could be considered an intangible type tax.

I do not remember whether it is deductible.

Bill

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"Brew1" <brew.one[at]gmail.com> wrote:

- quote -

The Fla intangible tax has been repealed

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

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Brew1 <brew....[at]gmail.com> wrote:

- quote -

Yes. Report it along with taxes.

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The most common occurrence of the Florida intangible tax
currently seems to be on a refinanced mortgage. I recall a
discussion here where it was pointed out that the full title
of the tax was something along the lines of the "Florida
intangible personal property tax," but that was when it was
a tax on intangible investments held outside of retirement
accounts.

Obviously personal property taxes are deductible on Schedule
A, but I don't see how a tax associated with real property
could be considered a personal property tax. Is the Florida
intangible tax shown on the HUD closing statement deductible
on a federal return?

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