Thus, if someone promises to pay your property taxes, follow up with the property tax office to ensure that the taxes were paid on time and get a hold of the person who was supposed to pay them if they weren't paid. He is an experienced attorney with a law degree and a B.A. If he does not pay the tax debt, then you can foreclose. A: We’ll deal with your question in two parts. If payments are not made to the county treasurer in a timely manner they become delinquent, incurring interest and fees each month they remain unpaid. Because of this tricky IRS rule, the decision on when to pay property taxes has to do with your income tax … You might be able to claim your property taxes if you’re a commission or sales employee and you … Anyone can pay more tax than they owe by making a donation to the US government. This process, often referred to as "squatters rights," doesn't happen as often as people may think but technically is a legal way to take someone's property by paying the taxes. If you own real property, you’re responsible for paying taxes on that property. Mortgage Interest Tax Deductions. If you’re an “Innocent Spouse” you qualify for full forgiveness. If the bill is paid, then you get your investment back and you also receive the interest owed on the taxes. The IRS provides an important exception to capital gains taxation, made-to-order for real estate investors: If you own an investment property, you can sell your property at a profit and roll your money over into another property within 60 days without having to pay capital gains taxes at all. To satisfy the debt, the home is auctioned off to the highest bidder. All rights reserved. Paying someone's taxes does not give you claim or ownership interest in a property, unless it's through a tax deed sale. Luckily for you, Uncle Sam provides some relief and lets you claim a tax deduction for qualifying property taxes. As you can see, the answer to the question "Can someone take your property by paying the taxes?" So, in a round about way you pay for them by paying him. So in this case, a person can take your property by paying the taxes, but there are caveats. On the one hand, if you live in a state that recognizes common law marriage and community property, you may have a case for your claim. Learn More. Robert Klinge thought that he did not have to pay property taxes. You will have to pay penalties and interest if the taxes are late. With adverse possession, a third party must publicly occupy and maintain a property for a significant period of time (usually two to five years or more) including paying property taxes. Sign in here. If you rent real estate such as buildings, rooms or apartments, you normally report your rental income and expenses on Form 1040 or 1040-SR, Schedule E, Part I. So if you were dutifully paying your property taxes up to the point when you sold your home, you can deduct the amount you paid in property taxes this year up to $10,000. You can deduct mortgage interest, points, and real estate property tax paid at closing. (4) Possession must be continuous and uninterrupted for five years. If the record title owner also paid property taxes during this time, your adverse possession claim will fail. State and local jurisdictions dictate the consequences of delinquent real estate taxes including whether someone can take your property by paying its taxes, what the process is for the sale and redemption of taxes, and beyond. A judge will review your claim to determine whether you have satisfied all of the elements of adverse possession, including the requirement that you were the exclusive person paying property taxes during the required time frame. Yes, if you itemize deductions you may deduct property tax (real estate tax) for land you own, even if it is located in another state. (5) The holder must pay all the taxes levied and assessed upon the property during the period. Paying property tax is always the homeowner's responsibility, regardless of who pays the taxes. How the Coronavirus Outbreak Is Affecting Property Taxes, Tax Sales, and Tax Foreclosures Across the Country. If you wanted to be paid back for the property taxes you can sue the estate (his children) to reimburse you, with interest, for your payment of the taxes. I also pay the house bills. If you don't get caught up on what you owe, the court will issue a judgment, and then the county collector will hold a sale to sell the delinquent tax … Most state and local tax authorities calculate property taxes based on … Still, check with your tax preparer just to be sure. You did not mention, though, if the child who has been paying the taxes has also been living in the home since mom's death. Amongst the many deals that home buyers can look at on the housing market, a back tax house-- a house that is being sold to pay off back taxes--is a tricky one, but it also may be the deal of a lifetime.When a home owner defaults on tax payments for a year or two, their house may be sold by the sheriff's department to pay those taxes. If you pay taxes on your personal property and owned real estate, they may be deductible from your federal income tax bill. IRS property tax deduction rules note that property tax deductions go to the owners of those properties. Should you fall on hard times, a loving family member or generous family friend can go to the tax office and pay the balance for you. We've put together a comprehensive tax guide that details how you can benefit from this once-in-a-generation investment opportunity. 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