Can I deduct taxes paid on property when I am computing capital gains?

Answer by  TOM10309 (149)

Yes, if you pay real estate taxes that the seller owed on the property that you bought, you can add that to your original basis, the cost of acquiring property.

Answer by  Vladimir (459)

As a generality, real estate taxes may be deducted from an individual's peronnal income tax burden. However service fees and taxes on remodeling/ repair services are not deductible.

Answer by  OldMrGoober (40)

You can not add property taxes to your cost basis to reduce your capital gains tax liability on the sale or disposition of property. Real estate taxes are expenses just like maintenance and insurance, and are not capitalized. However you may deduct your real estate taxes if you itemize deductions on a Schedule A.

Answer by  Jaggers (1018)

Don't make property taxes part of the capital gains computation. Use all the regular deductions like auto expenses( trips to you broker) phone ,including the six cell phones that your dependents have,and your home office. Compute your tax and THEN deduct your property tax from the taxes that you owe. If audited claim ignorance.