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Old 02-23-2013, 02:44 PM
 
14 posts, read 18,056 times
Reputation: 16

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Hi,
I paid my CA property taxes with the credit card. Is the credit card fee (over $100) the county charges you to pay property taxes deductible in the Federal return? I have gotten conflicting answers.
This is what I found on the IRS site:
Can I claim my expenses as miscellaneous itemized deductions on Schedule A (Form1040)?

You have allowable deductible miscellaneous expenses.

Your expense is a qualified deductible miscellaneous expense because it was used for the purpose of producing or collecting income, or managing, conserving or maintaining income producing property, or to determine, contest, pay or claim a refund of any tax.


Report the type and amount of your expense on the "Other expenses" line of Schedule A (Form 1040). Attach your Schedule A to your Form 1040, U.S. Individual Income Tax Return.

You can only deduct the amount of your total miscellaneous expenses that exceeds 2% of your Adjusted Gross Income.

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Old 02-23-2013, 04:17 PM
 
Location: The Triad (NC)
26,847 posts, read 57,851,863 times
Reputation: 29256
Quote:
Originally Posted by dalidali View Post
Hi,
I paid my CA property taxes with the credit card.
Is the credit card fee... deductible?
Can you think of ANY reason why it should it be?
I sure can't.
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Old 02-24-2013, 12:01 PM
 
Location: Somewhere in northern Alabama
16,849 posts, read 51,301,408 times
Reputation: 27678
Since it is optional, it ain't goinna fly. If it were allowed, there would be all sorts of claims, such as "I had to visit Washington D.C. for a week so that I could drop my return off personally to the I.R.S. Therefore, my trip is deductible on my taxes."
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Old 02-24-2013, 02:44 PM
 
16,700 posts, read 18,913,643 times
Reputation: 6797
The credit card fee is $100? What county you live in?
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Old 02-24-2013, 06:06 PM
 
Location: Great State of Texas
86,093 posts, read 69,881,813 times
Reputation: 27519
Quote:
Originally Posted by evilnewbie View Post
The credit card fee is $100? What county you live in?
Something new that counties all over the country are doing.
Read and heed before you pay that bill with your CC.

Here in Texas they are charging a percentage of the bill as the fee.
3% of your bill is their CC fee for one county.
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Old 02-24-2013, 10:21 PM
 
Location: Someplace Wonderful
5,170 posts, read 3,726,329 times
Reputation: 2546
Quote:
Originally Posted by evilnewbie View Post
The credit card fee is $100? What county you live in?
It is sure that in my county. Maybe more!

Who the frack does Government think they are? If grocery stores, gas stations, hot dog stands charged a "convenience" fee, government would be all over them with regulations and fines.

Mutter mutter mutter .....
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Old 02-25-2013, 12:05 PM
 
Location: Carmichael, CA
1,935 posts, read 2,728,262 times
Reputation: 2923
Not a tax professional (although I've taken numerous tax classes on the way to be) and here's my opinion: Although you're required to pay the deductible tax, you are not require to pay it with a credit card, so the credit card fee wouldn't be deductible.

Think of it this way: if you paid by check, and your bank charged a per-check fee, and you paid for the stamp to mail it, neither the bank fee or the stamp cost would be deductible as an expense.

This is one of the downsides to the wave of "let's raise taxes but call it a fee"--if the county just tacked $100 onto everyone's tax bill, you could deduct it. Since they call it a "convenience fee" you can't.
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