High Property Taxes in Houston Area?

[Lowexpectations]

Originally Posted by vwgto

Typically, if your personal property taxes (along with the other amounts you itemize) do you exceed your standard deduction (which you are already entitled to), you get no tax benefit.

You've got this backwards I think . If your itemized deductions exceed the standard you do get a tax benefit

[vwgto]

Originally Posted by Lowexpectations

You've got this backwards I think . If your itemized deductions exceed the standard you do get a tax benefit

I think we just said the same thing in a different way: If you have more deductions than the standard, then you get a benefit for that extra amount. If your deductions do not exceed your standard, then you default to the higher standard - - and the itemized deductions (which do not add-up to as much as the standard) provide no tax benefit.

[trbstang]

Originally Posted by Lowexpectations

You've got this backwards I think . If your itemized deductions exceed the standard you do get a tax benefit

It all hinges on the one word I bolded in your quote. If they do NOT exceed, that is correct, you get no benefit!

One way to possibly take some advantage of the itemized deductions if you are below the standard deduction amount is to "stack" 2 years of property taxes in one year, paying them in Jan and Dec of the same year. You alternate the itemized deduction and standard deduction each year. I did this for several years in our first house where the taxes and mortgage interest ran about $6K per year. This was back when the standard deduction was about $7K. So I would take the standard one year, and itemize the next for about $9K. Not a big savings, but one penny less paid to the IRS is one penny more in my pocket!

[Lowexpectations]

Originally Posted by trbstang

It all hinges on the one word I bolded in your quote. If they do NOT exceed, that is correct, you get no benefit!

One way to possibly take some advantage of the itemized deductions if you are below the standard deduction amount is to "stack" 2 years of property taxes in one year, paying them in Jan and Dec of the same year. You alternate the itemized deduction and standard deduction each year. I did this for several years in our first house where the taxes and mortgage interest ran about $6K per year. This was back when the standard deduction was about $7K. So I would take the standard one year, and itemize the next for about $9K. Not a big savings, but one penny less paid to the IRS is one penny more in my pocket!

If you do this you can also pay your jan mortgage payment in dec so the interest is paid into the itemized tax year