mortage tax
I am doing a lease to own through a friend, in which is still in his name. I will be paying the property tax. Am I entitled to the property tax return on the house, or is he?
1 Answer from Attorneys
Re: mortage tax
The income tax deduction for property taxes on your personal residence belongs to the homeowner who pays the tax. Since you are not the homeowner at this time, you cannot deduct the tax, and since the seller isn't paying the tax, he can't deduct it either. It would be better for the seller to increase the lease payments to cover the taxes and then to pay the tax himself. He could then deduct the tax as an expense of leasing out the property. On the other hand, if you are using the property for business purposes, then you could deduct the property taxes as a business expense.
Barbara Lamar
Law Offices of Barbara Lamar
127 Lewis St.
San Antonio, TX 78212
210-223-9389 San Antonio
512-376-4235 Austin/San Marcos
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