It's my favorite time of the year again, the time where I get to figure out how to send the least amount of $ to my rich uncle in Washington.
Having purchased a second home last April (CD32), I am wondering if the 5% paid to the Maryland DNR (listed as an excise tax on the closing documents) is an allowable deduction. Does anyone have any experience with this? I know I can claim the interest expense on the mortgage.
Seems to me that as a 'home', the tax paid should be deductable in much the same way my local property tax is.
Brad
bmeilink@shentel.net
DNR Fee (tax)
Moderator: Jim Walsh
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Ly Heiges
Re: DNR Fee (tax)
Brad,
As a former Marylander (Rockville) I have paid the wonderful tax on my boats for 21 years and continue to do so on the one which is still up there. The one which is still up there is a documented boat and had a mortgage on it, just like a house, but my accountant assured me that Louis Goldstein, for the past century before his death, did NOT consider that any type of a deductable residence tax. When they started the recycling plan in Montgomery County we clearly had it pointed out that that was NOT part of our property tax and thus could not claim it with our Real Estate taxes.
Talk to your accountant or tax attorney and get his/her view on this. I have to pay three times as much per boat (and I have two) to Florida DNR down here and the same thing I am sure will apply. I haven't talked to my accountant about it yet, but KNOW the answer!
Good Luck!
Lyn Heiges
CD28 MOON CHILD St. Pete Beach, FL
CD27 GUILLEMOT, Essex, MD
lheiges@compuserve.com
As a former Marylander (Rockville) I have paid the wonderful tax on my boats for 21 years and continue to do so on the one which is still up there. The one which is still up there is a documented boat and had a mortgage on it, just like a house, but my accountant assured me that Louis Goldstein, for the past century before his death, did NOT consider that any type of a deductable residence tax. When they started the recycling plan in Montgomery County we clearly had it pointed out that that was NOT part of our property tax and thus could not claim it with our Real Estate taxes.
Talk to your accountant or tax attorney and get his/her view on this. I have to pay three times as much per boat (and I have two) to Florida DNR down here and the same thing I am sure will apply. I haven't talked to my accountant about it yet, but KNOW the answer!
Good Luck!
Lyn Heiges
CD28 MOON CHILD St. Pete Beach, FL
CD27 GUILLEMOT, Essex, MD
Brad Meilink wrote: It's my favorite time of the year again, the time where I get to figure out how to send the least amount of $ to my rich uncle in Washington.
Having purchased a second home last April (CD32), I am wondering if the 5% paid to the Maryland DNR (listed as an excise tax on the closing documents) is an allowable deduction. Does anyone have any experience with this? I know I can claim the interest expense on the mortgage.
Seems to me that as a 'home', the tax paid should be deductable in much the same way my local property tax is.
Brad
lheiges@compuserve.com
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john churchill
Re: DNR Fee (tax)
excise tax is typically deductible if you itemize, but i am no accountant. if you do your own taxes, i am certain the answer is in the booklet.Brad Meilink wrote: It's my favorite time of the year again, the time where I get to figure out how to send the least amount of $ to my rich uncle in Washington.
Having purchased a second home last April (CD32), I am wondering if the 5% paid to the Maryland DNR (listed as an excise tax on the closing documents) is an allowable deduction.