Property tax question

[Anal Annie]

OK, I KNOW this has been asked recently but I can't find it. This is our first year of ownership...we're working on our taxes today... Looking at the annual dues statement we just got for the end of the year - do we take the "Property Tax-ACTUAL" amount (which of course is different from our "Amount Paid") and enter that number under the Property Tax Section on the line that's called "Real Estate Tax on Additional Homes or Land"?!
TIA!!

 

[Anal Annie]

Bueller? Bueller? Anybody?

 

[forevercruising]

Bump! I am wondering, as well!

 

[mla973]

Hmmm... I filed and already got my refund and we didn't enter any info here... I'm interested in an answer as well.

 

[wildernessDad]

I used the actual amount. I paid a little bit more, but it was applied as a credit to next year's dues.

 

[White_Sox_Fan]

I used the actual amount. I paid a little bit more, but it was applied as a credit to next year's dues.

I agree with this. I'm a new member but my understanding is your dues include estimated taxes for the year. The following January an adjustment is made to reflect the actual taxes paid, you are either credited with the overpayment or the underpayment is added to your dues bill. Either way you are only entitled to claim the actual tax paid.

 

[Anal Annie]

Using the "actual" number makes sense...I really just wanted to make sure we're putting it the right line...it's the only one that seems logical. DH insists turbo tax didn't ask any questions specifically about property tax on a timeshare so he just picked that "real estate tax on an additional home or land" line sort of as a generic place to put it. It's not a huge number and I don't think it really affects our bottom line but I just want to make sure we put it in the right spot before we hit submit.

 

[MemphisTN]

I called the IRS this afternoon to get clarification. You can call them for your own piece of mind at 1-800-829-1040 or research at IRS.gov. The agent I spoke to referenced Publication 936 for my mortgage interest question and publications 530 & 17 for my real estate tax question. I went and downloaded these documents and printed off the applicable pages and also wrote down a summary of my discussion with agent, her interpretation and her ID#. I am putting these in my 2007 tax file to support my decision.

She basically said that a time share can be treated as a second home for tax purposes. BUT there are stipulations, she asked me several questions. One thing she said was that you can only deduct items on ONE Second Home. She believed that you could deduct the mortgage interest paid during 2007 on Schedule A line 10. She also said that the real estate tax was deductible on Schedule A for what you paid for the year. BUT we purchased our DVC during 2007 so I asked about that even though we paid 100% of the 2007 dues. She said that real estate taxes are deductible to the seller from the 1st day of the year up until the day BEFORE the sale. The buyer can deduct the DAY OF THE SALE through 12/31/07. So you would have to prorate the 2007 real estate tax for 2007 if you purchased during 2007.

DISCLAIMER: I am not a tax expert and am not giving tax advice. I am just summarizing my converstation with an IRS agent. I am moving forward based on what I was told. Please contact the IRS or do other due diligence in coming to your own conclusions.

 

[3pirates]

Yes...you can deduct mortgage interest and taxes on one vacation home, and a timeshare counts.

Turbotax will not ask about timeshares, but the questions on second home are applicable.

Actual taxes should be used.

I do work in a firm, we do taxes, and while I would not advise individuals over the internet, the answers given here are on track with what we do.

 

[Anal Annie]

Thanks for the research and replies!