Instructions For Schedule A (Form 1040) - Itemized Deductions

You must look at your real es-

you paid to a foreign country or U.S.

Line 6

tate tax bill to decide if any

possession.

nondeductible itemized charges,

Real Estate Taxes

CAUTION

You may want to take a credit

such as those listed earlier, are included

for the foreign tax instead of a

TIP

in the bill. If your taxing authority (or

If you are a homeowner who re-

deduction. See the instructions

lender) doesn't furnish you a copy of

ceived assistance under a State

TIP

for Form 1040, line 48, for details.

your real estate tax bill, ask for it.

Housing Finance Agency Hard-

est Hit Fund program or an Emergency

Prepayment of next year's property

Homeowners' Loan program, see Pub.

Interest You Paid

taxes. Only taxes assessed and paid in

530 for the amount you can deduct on

2017 can be deducted for 2017. State or

line 6.

local law determines whether and when

The rules for deducting interest vary, de-

a property tax is assessed, which is gen-

Include taxes (state, local, or foreign)

pending on whether the loan proceeds

erally when the taxpayer becomes liable

you paid on real estate you own that

are used for business, personal, or in-

for the property tax imposed.

wasn't used for business, but only if the

vestment activities. See Pub. 535 for

taxes are assessed uniformly at a like

Refunds and rebates. If you received a

more information about deducting busi-

rate on all real property throughout the

refund or rebate in 2017 of real estate

ness interest expenses. See Pub. 550 for

community, and the proceeds are used

taxes you paid in 2017, reduce your de-

more information about deducting in-

for general community or governmental

duction by the amount of the refund or

vestment interest expenses. You can't

purposes. Pub. 530 explains the deduc-

rebate. If you received a refund or rebate

deduct personal interest. However, you

tions homeowners can take.

in 2017 of real estate taxes you paid in

can deduct qualified home mortgage in-

an earlier year, don't reduce your deduc-

terest (on your Schedule A) and interest

Don't include the following amounts

tion by this amount. Instead, you must

on line 6.

on certain student loans (on line 33 of

include the refund or rebate in income

your Form 1040), as explained in Pub.

Itemized charges for services to

on Form 1040, line 21, if you deducted

936 and Pub. 970.

specific property or persons (for exam-

the real estate taxes in the earlier year

ple, a $20 monthly charge per house for

If you use the proceeds of a loan for

and the deduction reduced your tax. See

trash collection, a $5 charge for every

more than one purpose (for example,

Recoveries in Pub. 525 for details on

1,000 gallons of water consumed, or a

personal and business), you must allo-

how to figure the amount to include in

flat charge for mowing a lawn that had

income.

cate the interest on the loan to each use.

grown higher than permitted under a lo-

However, you don't have to allocate

cal ordinance).

Line 7

home mortgage interest if it is fully de-

Charges for improvements that

ductible, regardless of how the funds are

tend to increase the value of your prop-

Personal Property Taxes

used.

erty (for example, an assessment to

build a new sidewalk). The cost of a

Enter the state and local personal prop-

You allocate interest (other than fully

property improvement is added to the

erty taxes you paid, but only if the taxes

deductible home mortgage interest) on a

basis of the property. However, a charge

were based on value alone and were im-

loan in the same way as the loan is allo-

is deductible if it is used only to main-

posed on a yearly basis.

cated. You do this by tracing disburse-

tain an existing public facility in service

ments of the debt proceeds to specific

Example. You paid a yearly fee for

(for example, a charge to repair an exist-

uses. For more information on allocating

the registration of your car. Part of the

ing sidewalk, and any interest included

interest, see Pub. 535.

fee was based on the car's value and part

in that charge).

was based on its weight. You can deduct

In general, if you paid interest in

only the part of the fee that was based

If your mortgage payments include

2017 that applies to any period after

on the car's value.

your real estate taxes, you can deduct

2017, you can deduct only amounts that

only the amount the mortgage company

Prepayment of next year's property

apply for 2017.

actually paid to the taxing authority in

taxes. Only taxes assessed and paid in

2017.

Use Schedule A to deduct qualified

2017 can be deducted for 2017. State or

home mortgage interest and investment

local law determines whether and when

If you sold your home in 2017, any

interest.

a property tax is assessed, which is gen-

real estate tax charged to the buyer

erally when the taxpayer becomes liable

should be shown on your settlement

Lines 10 and 11

for the property tax imposed.

statement and in box 6 of any Form

1099-S you received. This amount is

Home Mortgage Interest

Line 8

considered a refund of real estate taxes.

See

Refunds and

rebates, later. Any real

If you are a homeowner who re-

Other Taxes

estate taxes you paid at closing should

ceived assistance under a State

TIP

be shown on your settlement statement.

If you had any deductible tax not listed

Housing Finance Agency Hard-

on line 5, 6, or 7, list the type and

est Hit Fund program or an Emergency

amount of tax. Enter only one total on

Homeowners' Loan program, see Pub.

line 8. Include on this line income tax

530 for the amount you can deduct on

line 10 or 11.

A-7

Instructions For Schedule A (Form 1040) - Itemized Deductions - 2017 Page 7

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