Property Tax Deduction on Life Estate Property

[Mike Mac]

I can't find a specific answer to a question from 1 of my clients. I read information regarding Life Estates in the Tax Book but not having much luck. The mom created a life estate when she deeded her home to family members. She is living in the home and paying all the property taxes. Can she legally deduct the entire amount of R/E taxes she paid even though she is really only a partial owner of the house. My logic says yes due to the fact that she would be responsible for all income generated by property up until the time of her death (but have learned long ago not to rely on logic to answer tax questions).

Could someone give me an answer or point me to a source where I can find the answer?

Thanks,

Mike Mac

[erchess]

I don't have a cite

but I would be comfortable deducting the taxes on her 1040. Question - whose name is on the tax bill? If it's someone else's then she might need to make sure the terms of the life estate clearly state that she must pay. The point is that generally to deduct a tax payment on a return for a different government it is not enough that you paid the tax but rather the tax must ordinarily have been legally owed by you. (Of course there is a quasi-exception to that which is that voluntary contributions to the government can be charitable contributions.)