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From: jpexg@mit-hermes.ARPA (John Purbrick)
Newsgroups: net.taxes
Subject: Re: Real Estate Taxes and Tax Reform
Message-ID: <2404@mit-hermes.ARPA>
Date: Fri, 31-May-85 13:07:47 EDT
Article-I.D.: mit-herm.2404
Posted: Fri May 31 13:07:47 1985
Date-Received: Sat, 1-Jun-85 14:27:10 EDT
References: <257@mhuxv.UUCP>
Organization: The MIT AI Lab, Cambridge, MA
Lines: 18

> I presume that both state and local income taxes and state
> and local real estate or personal property taxes would fail
> as deductions under these proposals. Does anyone know for
> sure? Is it just income taxes or income and property taxes?

All local taxes.

> Would real estate tax on rental
> property be allowed to offset rent receipts? It would seem that
> in such a case the real estate tax is a business expense just
> like repairing the roof would be.

It seems to me that local taxes are a "cost of doing business" and ought to
be deductible against a landlord's profit, but there are lots of things that
"ought" to be legal and aren't. Repairing the roof is a business expense if
it's to maintain a property's condition, but must be depreciated if you
"prolong the property's life". Go figure it out.