Re: deducting the Florida intangible tax

Posted by Brew1 on November 7, 2007, 2:46 am

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Doc stamps are not deductible.

There is a disconnect between the IRS definition of a
(deductible) personal property tax and the State of Florida
collecting an "intangible personal property tax" on debt
secured by lien or mortgage on real property.

The IRS defines deductible personal property taxes as "those
based only on the value of personal property such as a boat
or car. The tax must be charged on a yearly basis ..."

http://www.irs.gov/taxtopics/tc503.html

Well, the Florida tax is nonrecurring, and it is not a tax
based on the value of personal property. The fact that
Florida calls it a personal property tax does not seem
sufficient to satisfy the IRS criteria.

I have deducted this tax in the past, and would be prone to
deduct it until told otherwise, except I doubt it would pass
the "reasonable position" test soon to go into effect. And
I regret my inability to devise a "simple Google search" to
discover a definitive answer.

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