How to file tax lien properties purchased

anntaylor49
anntaylor49 Member Posts: 1 Newcomer
in Filing my taxes

I have purchased several properties from tax lien, paid the taxes owed on property. How do I file on my taxes this investment.

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Answers

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 69

    Thank you for posting this question, ann.

    Congratulations on your investment. At this point, the amount that you pay for the property taxes is the only deduction that you can claim on your taxes until you sell the properties. This deduction is located as an Itemized Deduction for other taxes paid.

    You will want to keep the amount you paid for the properties separated in a notebook. Any improvements you make to the properties adds to the original cost (paying the tax liens) and will reduce any capital gains you realize at the point of sale.

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