Question about property tax

Question

There are four people on a deed. Two of them were already on there before our mother died. When she died myself and my niece were added as the will stated. Now that the property taxes are coming up no one wants to help my pay the property tax. If I pay the property tax by myself can I get their names taken off the deed?

Answer 1

Per 26 U.S Code Sec. 164, property tax is deductible in the year paid or accrued, but is limited to the lesser of $10,000 ($5,000 if married filing separately) or the actual amount paid.

The amount you are able to deduct for federal tax purposes also depends on your type of ownership and locality. For example, if owned as tenants in common, many jurisdictions dictate that each individual owner is jointly and severally liable for the payment of property tax and you may be allowed to deduct the entire amount of property tax you paid. There have also been cases in other jurisdictions where each co-tenant is only allowed to deduct their proportional share regardless of amount actually paid.

The payment of property tax has little to do with the transfer of ownership. You and your niece may have been added via quitclaim deed, which is a means of transferring ownership. Depending on the type of ownership (ie. joint tenancy), the other owners may or may not be able to sell their ownership interests without first obtaining consent from other tenants. You are unable to remove the other owners from the title without their permission, regardless of if they choose not to pay the property tax coming due. This may be more of a legal issue than a tax issue, and it may be helpful for you to contact a local attorney with experience in these matters in your particular area/jurisdiction.