Property Tax Deduction

AAA

DEFINITION of 'Property Tax Deduction'

State and local property taxes that are generally deductible from United States federal income taxes. These include real estate taxes, which include any state, local or foreign taxes that are imposed for the welfare of the general public. Deductible real estate taxes generally do not include taxes charged for home renovations or for services like trash collection.

INVESTOPEDIA EXPLAINS 'Property Tax Deduction'

From time to time there is talk of eliminating the federal property tax deduction. Some of the arguments for doing so are that it, along with federal mortgage interest tax deduction, discriminates against renters and encourages people to take on more debt. Proponents of retaining the property tax deduction say that it promotes homeownership.

VIDEO

RELATED TERMS
  1. Assessment

    Occurs when an asset's value must be determined for the purpose ...
  2. Land Value Tax - LVT

    A tax on the value of a piece of land. Land value tax inherently ...
  3. Mill Levy

    The assessed property tax rate used by local governments and ...
  4. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  5. Fair Market Value

    The price that a given property or asset would fetch in the marketplace, ...
  6. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
Related Articles
  1. 10 Money-Saving Year-End Tax Tips
    Taxes

    10 Money-Saving Year-End Tax Tips

  2. Tax Deductions For Rental Property Owners
    Taxes

    Tax Deductions For Rental Property Owners

  3. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

  4. Vacation Home Or Income-Producing Investment?
    Taxes

    Vacation Home Or Income-Producing Investment?

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center