Ask Terry Questions property tax deduction on 2 family home

property tax deduction on 2 family home

By Terry Savage on April 20, 2018 | Taxes & Economy

If I purchase a two-family home with my adult son and we are both on the deed and he occupies one unit and I occupy the other and we file separate tax returns then can each of us deduct up to $10,000 in property taxes if the total property taxes owed on the 2-family house is ~$20,000 per year?

Terry Says

My best guess is that the answer is "yes" -- since you are not married, not married filing separately.  Since you each own the home and file separate tax returns, I would think you could each deduct up to $10,000 in state taxes (income and property).   And I would suggest that you each write a separate check to pay the property taxes. But please check with a tax preparer when you do your taxes next year.  You may find this is a "moot" question with the new standard deduction of $12,000 for individuals.  Unless you have a lot of other deductions, you might not even itemize at all.

money

ASK TERRY

a personal
finance question