If you own a condominium, the real estate taxes you pay on that property are also deductible. Note that if you and your spouse hold the property jointly and file separate tax returns, each of you may only deduct the taxes you individually paid on the property. If real estate is sold during the year, the real estate taxes must be divided between the buyer and the seller according to the number of days that each party owns the property. The seller pays the tax up to the date of the sale and the buyer pays and deducts those taxes, starting with the day of the sale. If you bought or sold property during the year, don t forget to deduct those taxes paid and reported at closing on your closing statement.
Personal property taxes Personal property taxes are deductible too.
The tax must be based on the value of the property. The tax must be charged on a yearly basis. This is true, even if it is collected more or less often than once a year. The tax must be charged on personal property. Small savings are cumulative and add up to greater financial independence.