real estate tax

[KWF]

Parents own a house in which they do not live, but instead is lived in by the parent's adult son and son's family. Son pays all expenses of the house, including real estate tax.

Who can deduct real estate tax, parents, son, or neither?

[TAXNJ]

See The Tax Book 4-9 - "Real Estate Taxes - Real estate taxes are deductible as itemized deductions only if the taxpayer owns the real estate and the taxes are based on the assessed value of the property.....

Real Estate Taxes

Real estate taxes are deductible as itemized deductions only if

the taxpayer owns the real estate and the taxes are based on the

assessed value of the property.

Real Estate Taxes

Real estate taxes are deductible as itemized deductions only if

the taxpayer owns the real estate and the taxes are based on the

assessed value of the property.

Real Estate Taxes

Real estate taxes are deductible as itemized deductions only if

the taxpayer owns the real estate and the taxes are based on the

assessed value of the property.

[Lion]

Only if the person is legally responsible to pay AND actually pays, can he deduct real estate taxes. However, did you research equitable ownership?

[New York Enrolled Agent]

Parents own a house in which they do not live, but instead is lived in by the parent's adult son and son's family. Son pays all expenses of the house, including real estate tax.

Who can deduct real estate tax, parents, son, or neither?

Neither

Reg.§1.164-1 states that the deduction is available if the real estate taxes are paid by the taxpayer on who the taxes are imposed. The taxes were imposed on the parents - they did not pay. The son paid but he was not the taxpayer on who the taxes were imposed.

Lion - the notion of equitable ownership is in the regulations for §163 which discusses the deduction for mortgage interest. I'm not sure it's applicable in this situation.

[Lion]

There may be newer rulings that changed the situation, but...

The taxpayers' residence was acquired in 1944 but the legal title to the property was held by others as nominees. The record title was never in the names of the taxpayers. The taxpayer wife, however, made all of the payments on the purchase price of the residence and the mortgage payments. She claimed deductions for the real estate taxes she paid on the property for the taxable years 1957 and 1959, but the deductions were disallowed by the Commissioner on the ground that she was not the owner of the property. The Tax Court held that the wife was the equitable owner of the residence and was entitled to deduct the real estate taxes paid even though legal title was in the names of others.

G.B. Casey, 24 TCM 1558, Dec. 27,604(M), TC Memo. 1965-282.

[TAXNJ]

See if any of the court cases relate to your scenario. Also, consider contacting the author of the article - Equitable Owner Equals Deduction

https://www.journalofaccountancy.com...deduction.html

[Dude]

Uslu deals with the Mort. Int deduction which the TC seems to have an easier time granting to non (equitable) owners who prove they are responsible payments.

https://www.leagle.com/decision/1997145074intcm137611203

I do remember reading a case where the adult child was able to claim the deduction (I dont remember if RE tax was granted) based on the premise that there was an expectation of inheriting the property and therefore demonstrating they had skin in the game. I can't find that case now though of course.