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Living in home owned by family trust in CA. I pay the property tax, is that deductible?

Forum|Forum|6 years ago
June 1, 2019
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Best answer by bwa

It would be deductible if you were the real or equitable owner of the property.

Depending on the facts and circumstances, you might be able to make the argument that you are a beneficial owner, but that's a difficult argument to make. For example, see this discussion on the TaxAlmanac site: http://www.taxalmanac.org/index.php/Equitable_or_Beneficial_Ownership

Another example is Blanton (TCM 1998-211). The US Tax Court denied the Sec. 121 gain exclusion because there was no equitable ownership. In the case, the Tax Court found that there was no risk of loss if the property was damaged, they couldn’t rent out the property, and had no legal title. Simply put, Equitable Ownership is difficult to support.

B

bwaAnswer

It would be deductible if you were the real or equitable owner of the property.

Depending on the facts and circumstances, you might be able to make the argument that you are a beneficial owner, but that's a difficult argument to make. For example, see this discussion on the TaxAlmanac site: http://www.taxalmanac.org/index.php/Equitable_or_Beneficial_Ownership

Another example is Blanton (TCM 1998-211). The US Tax Court denied the Sec. 121 gain exclusion because there was no equitable ownership. In the case, the Tax Court found that there was no risk of loss if the property was damaged, they couldn’t rent out the property, and had no legal title. Simply put, Equitable Ownership is difficult to support.