{"id":26562,"date":"2017-08-24T20:23:56","date_gmt":"2017-08-24T20:23:56","guid":{"rendered":"https:\/\/resource-center.hrblock.com\/?p=26562"},"modified":"2021-06-08T15:19:20","modified_gmt":"2021-06-08T20:19:20","slug":"real-estate-vs-personal-property-tax","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/around-block\/offers\/real-estate-vs-personal-property-tax\/","title":{"rendered":"Real Estate and Personal Property Tax: What’s the Difference?"},"content":{"rendered":"

Real Estate Tax vs. Personal Property Tax: What\u2019s the Difference?<\/strong><\/p>\n

Whether you will pay real estate tax, personal property tax, or both is a matter of your property\u2019s mobility:<\/p>\n

Real estate tax (also called \u201creal property tax\u201d)<\/strong> applies to property that is immovable, such as your house, a building, or land. If you own a home, you pay this tax through your monthly mortgage payment or through direct payment to your tax assessor.<\/p>\n

Personal property tax<\/strong> applies to movable property \u2013 an RV, boat, vehicle, or plane, among other assets.<\/p>\n

Real estate and personal property taxes are based on the type of property you own and usually its assessed value.<\/p>\n

Deducting Real Estate Taxes: Quick Facts<\/strong><\/p>\n

Real estate taxes based on the assessed value of the real estate imposed by a government office and for general public benefit are deductible only by the taxpayers who own it and pays it.<\/p>\n

To get a tax benefit for those real estate taxes, you must itemize instead of using the standard deduction.<\/p>\n

You can deduct the real estate taxes you pay on your property in the year you pay them if they have been assessed, which is generally when the taxpayer becomes liable for the property tax imposed (i.e., presumably, when the notification of the assessment is sent to you). For example, you may receive a bill due in January 2018 for an amount that assessed in 2017 and you decide to prepay in December 2017. This means you\u2019ll deduct the prepaid amount on your 2017 return.<\/p>\n

If you own a home, your mortgage lender may pay your real estate taxes from an escrow account. If so, they\u2019ll send you a Form 1098. This form will report any real estate taxes you paid. You should receive your 1098 by Jan. 31, 2018. If you don\u2019t, contact your mortgage lender.<\/p>\n

Statements required by the Consumer Financial Protection Bureau (CFPB) also report real estate taxes. When you buy or sell property, you\u2019ll receive a Closing Disclosure statement. The statement lists the taxes paid by both the buyer and seller.  These are usually deducted based on how many days each owned the property during the year.<\/p>\n

If your condo or homeowner\u2019s association charges you a special fee, you can\u2019t deduct it as real estate tax; these fees are considered association fees. However, you can deduct any amount of your fee that covers real property taxes. If the association sends you a statement, it should tell you the amount of real property tax the fees covered.<\/p>\n

Deducting Personal Property Taxes: Quick Facts<\/strong><\/p>\n

To deduct personal property taxes, all of these must apply:<\/p>\n