Moreover, the TCJA eliminated itemized deductions for several types of expenses during through —these include:. You must choose whether to itemize or take the standard deduction each year. The IRS won't tell you what's in your best interest—it doesn't care if you make the wrong choice and overpay your taxes.
You or your tax preparer must decide. Obviously, you should itemize only if it will give you a larger total deduction than the standard deduction for that year. Through careful planning, you can often increase your deductible expenses for a given year so that it pays to itemize that year.
For example, you can bunch your charitable contributions in one year, instead of spreading them over two or more years. This will give you a bigger deduction for the bunched year and may enable you to itemize. The same strategy can be used for discretionary medical expenses.
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Grow Your Legal Practice. Meet the Editors. Mortgage Basics - 7-minute read. October 26, Can you deduct your homeowners insurance? And if not, what can you deduct? Sarah Sharkey - September 22, This article will discuss exemptions and credits you should be on the lookout for as well as giving some basics on how property taxes work.
Home Buying - 5-minute read. Sarah Sharkey - October 19, If you own your own home, you might be able to save on your tax returns. Get the most value from your home with these nine tax deductions. What Property Is Tax Deductible? Primary home Vacation home Land Vehicles Boats. Great news! Vacation homes. Property outside the United States.
Cars, RVs and other vehicles. Transfer taxes on the sale of house. Homeowners association assessments. How to take the property tax deduction. If you bought or sold your house this year. Learn more ways to capitalize on your home. How to get a bigger property tax deduction.
On a similar note Dive even deeper in Taxes. Explore Taxes. Get more smart money moves — straight to your inbox. View Memberships. Search For. What are real estate taxes? Are real estate taxes deductible? State and local income taxes or state and local sales taxes you can't claim both. State and local income tax or sales tax If you itemize deductions, you can deduct state and local income taxes or state and local sales taxes -- but not both.
What can I deduct? Personal property taxes Non-real estate property taxes based on the item's value usually a car, RV, or boat. State and local income taxes State and local income taxes that were withheld from your salary during the tax year. Prior year state and local income tax payments State and local income taxes you paid during the current tax year for a previous tax year. Don't include penalties and interest. State and local estimated tax payments State and local estimated tax payments made during the current tax year, including any part of a prior year's refund credited to your current year's state or local income taxes.
State and local sales taxes State and local sales taxes you paid for items like food, clothing, medical supplies, cars, and boats. Use the optional sales tax tables found at the end of the Schedule A Instructions. Data source: Internal Revenue Service. What can't I deduct? Of course, there are many items you can't deduct as part of the SALT deduction, including the following: Taxes for rental or business property.
Taxes on foreign property. Property taxes your lender hasn't submitted to the county yet look at Form or ask your lender if you're not sure. Federal income taxes remember, the SALT deduction is for state and local taxes. Transfer taxes on the sale of a house. Homeowners association assessments. Property taxes you paid for someone else or for a property you don't own.
Charges that show up on your property tax bill for non-tax items like trash collection, assessments for local benefits such as building a sidewalk in front of your house , and fees to satisfy a fine you owe. Customs duties. Federal estate and gift taxes. Some state and local taxes, including taxes on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, and license fees e. Taxes you haven't paid yet. Standard deductions When you file your taxes, you can take either the standard deduction or you can itemize.
Itemized deductions If you want to deduct your real estate taxes, you must itemize. Still, there are several deductions that might make itemizing come out ahead of the standard deduction, including: mortgage interest, medical and dental expenses, charitable contributions, and casualty and theft losses.
Let's take a look at each of those individually. Mortgage interest The deduction applies to mortgages you use to buy, build, or substantially improve a home this is called acquisition debt. The deduction limit depends on when you got the mortgage: After Dec. Before Dec. Medical treatments and surgeries. Dental and vision care. Mental healthcare. Prescription medications.
Medical appliances such as glasses, contacts, hearing aids, and dentures. Travel expenses for getting to and from your appointments. However, there are certain expenses you can't deduct: Any expense that you've been reimbursed for for example, if your insurance or employer covers the costs.
Cosmetic procedures. Non-prescription drugs except insulin. General health products and services, such as health club memberships, vitamins, and toothpaste.
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