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Discussion:Life Estate - Real Estate tax deduction

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Discussion Forum Index --> Tax Questions --> Life Estate - Real Estate tax deduction


Supdat (talk|edits) said:

28 March 2014
Pursuant to a will, Decedent left a condominium in trust, life estate to A, remainder to B. Pursuant to the terms of the trust, A has the right use it during her lifetime. She uses it as her second home. She pays all of the carrying charges on the condo, including the real estate taxes and the common charges. Are the real estate taxes on the condominium paid by A deductible by A for income tax purposes as an itemized deduction?

Dennis (talk|edits) said:

28 March 2014
The rights and obligations of a life tenant are a matter of individual state law. I am not aware of any state where the life estate does not rise to a level that would allow the deduction.

Ckenefick (talk|edits) said:

29 March 2014
Me neither. Here's the NC statute, for example:

ยง 105-384. Duties and liabilities of life tenant. (a) If real or personal property is held by a tenant for life or by a tenant for the life of another, it shall be the duty of the life tenant to pay the taxes imposed on the property. (b) Any remainderman or reversioner of real or personal property who pays the taxes thereon may recover the money so paid in an action against the life tenant of the property; in the case of real property, the action may be brought only in the appropriate division of the General Court of Justice of the county in which the real property is located. (c) Any tenant for life of real or personal property who suffers the property to be foreclosed and sold or sold under levy for failure to pay the taxes thereon shall be liable to the remainderman or to the reversioner for any damages incurred. (1879, c. 71, ss. 53, 54; Code, ss. 3698, 3699; 1901, c. 558, s. 45; Rev., s. 2859; C.S., s. 7982; 1971, c. 806, s. 1.)

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