Itemized Deductions

State: Texas

Can the late fees and penalties on real estate taxes due be used as an itemized deduction?

Thanks,

Eddie

Generally, penalties and interest on tax deficiencies are not deductible.

Thanks

Thanks for the reply.

Eddie

As a tax preparer, I back up eddie57's answer. You may NOT deduct the interest and penalties from late tax payments.

eddie57 said:

State: Texas

Can the late fees and penalties on real estate taxes due be used as an itemized deduction?

Thanks,

Eddie

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Not to argue with what has been said already, but as a practical matter, if the late charges and interest are paid out of escrow and show up unitemized on your mortgage statement as "real estate taxes paid" - deduct them.

irsos said:

Not to argue with what has been said already, but as a practical matter, if the late charges and interest are paid out of escrow and show up unitemized on your mortgage statement as "real estate taxes paid" - deduct them.

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And pray you do not get audited. If you have an escrow impound and they manage to screw up and not pay the taxes on time so that there is a late penalty / interest I would:

1. Sue the mortgage company in small claims because of their failure to property handle the account.
2. Argue to release from escrow if they can't do a decent job so you can (I managed to get them to drop the impound on one mortgage after they failed to pay my insurance).