Deductions for Taxes
Even taxes can be itemized and claimed tax
deductions for. There are, however, limits on deductions for
taxes. Below is information on common deductions on taxes.
There are many types of taxes that qualify for itemized
deductions for taxes. There are more deductions for taxes that
are not covered in this section.
What can I take for deductions on
Income taxes that can be deducted
General sales taxes
Taxpayers can choose to deduct general state
and local sales taxes instead of state and local income taxes.
In calculating general sales taxes, taxpayers can either use
the actual expenses or the optional sales tax tables. The
general sales tax tables are based on:
- the state where the taxpayer lives,
- his or her income
- the number of tax exemptions claimed on tax return
Real estate taxes
Real estate taxes are tax deductible.
Deductible real estate taxes are any state, local or foreign
taxes on real estate property levied for the general public
welfare. Deductible real estate taxes usually do not include
the taxes charged for local benefits and improvements that
increase the value of the property.
Personal property taxes
Personal property taxes are tax deductible
if it is a state or local tax that is:
charged on personal property
based only on the value of the personal property
charged on a yearly basis even if it is collected
once a year
Taxpayers can deduct certain taxes if they
are ordinary and necessary business expenses. We discuss
business expenses tax deductions in another section.