Property Tax Deduction

The US tax department has set certain provisions regarding the conditions and restrictions of property tax deduction. Federal laws, however, have become friendlier for those who want to own a house or property as they have allowed homeowners certain deductions on their property tax payments when they are calculating their taxable income. In fact there are some significant tax advantages to homeowners compared to those who rent a house or an apartment. The property tax deduction scheme allows you to strategically pay your house mortgage from your monthly income. This means that a percentage of your salary is used to pay the interest of the loan, while another percentage is used to pay the loan. The property tax deduction can be itemized and is usually tax deductible under the condition that you will use another property – your second home or primary residence – as collateral for the loan you made.