Do property taxes increase the basis of a home?

by Rob Seltzer, CPA, PFS

Property taxes are an expense and do not increase the basis of the property. If the property is your primary residence or second home or raw land, property taxes are deducted on Schedule A of your tax return as an itemized deduction. If you don't itemize and take the standard deduction, then property taxes will bring you no benefit. If the property is a rental, property taxes would be reported on Schedule E as a deduction against rental income.

Rob Seltzer is principal of Robert Seltzer, CPA, PFS, in Beverly Hills.

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