What is the difference between Real estate taxes VS. Property taxes?
I know you put these expenses on Schedule A to itemize deductions. But where do you exactly place them on Schedule A? On line 6A of Real Estate Taxes OR line 7A3 Personal Property Taxes?
- ninasgrammaLv 710 years agoFavorite Answer
The term "property tax" includes "real estate tax."
There are two types of property: Personal Property and Real Property. When the property tax is based on the value of real property (land, buildings) it is called real estate tax. When the property tax is based on the value of personal property (cars, boats, anything that is not real property) it is called personal property tax.
As you note, there are separate lines on Schedule A for each type of property tax.
- BobbieLv 710 years ago
What schedule A do you find lines 6A and Line 7A3?
Real estate taxes and Property taxes are one and the same thing and would be entered on line 6 of the schedule A of the 1040 tax return.
Real Estate Taxes
Include taxes (state, local, or foreign) you paid on real estate you own that was not used for business, but only if the taxes are based on the assessed value of the property. Also, the assessment must be made uniformly on property throughout the community, and the proceeds must be used for general community or governmental purposes. Pub. 530 explains the deductions homeowners can take.
If you had any deductible tax not listed on line 5, 6, or 7, list the type and amount of tax. Enter only one total on line 8. Include on this line:
* State and local personal property taxes you paid, if the taxes were based on value alone and were imposed on a yearly basis.
Hope that you find the above enclosed information useful and good luck to you.Source(s): http://www.irs.gov/pub/irs-pdf/f1040sa.pdf http://www.irs.gov/instructions/i1040sca/index.htm...
- shoredude2Lv 710 years ago
Real estate taxes or taxes on land and the things connected to it such as permanent structures like homes and garages.
Personal property taxes are taxes that some, but not all, states have on things like cars and mobile homes (which are not attached to the land as a permanent structure).
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- Edward the LessLv 710 years ago
Depends on the type of tax paid. Real estate taxes are taxes paid on Real Property, (i.e. your house, condo, mountain cabin, etc.). Personal property taxes are paid on items like cars, boats, motorcycles, etc.
- StephenWeinsteinLv 710 years ago
"Real estate" taxes are taxes on land and buildings.
"Personal property taxes" are taxes on every other type of property (cars, for example).