Property Taxes Paid on Home - Fill in the amount of property taxes that you paid on your home.
Do not include:
- Charges for special assessments, delinquent interest, or services that may be included on your tax bill (such as trash removal, recycling fee, or a water bill).
- Property taxes that you can claim as a business expense (for example, farm taxes or rental property taxes).
- Property taxes paid on property that is not your primary residence (such as a cottage or vacant land).
- Property taxes that you paid in any year other than the current filing year.
Property taxes are further limited as follows:
a. If you bought or sold your home during the year, the property taxes of the seller and buyer are the taxes set forth for each in the closing agreement made at the sale or purchase. If the closing agreement does not divide the property taxes between the seller and buyer, divide them on the basis of the number of months each owned the home.
b. If you owned a mobile home during the year, property taxes include the municipal permit fees paid to your municipality and/or the personal property taxes paid on your mobile home.
c. If you, or you and your spouse, owned a home jointly with one or more other persons, you may only use that portion of the property taxes that reflects your percentage of ownership. For example, if you and another person (other than your spouse) jointly owned a home on which taxes of $1,500 were paid, each of you would claim a credit based on $750 of taxes.
CAUTION Property taxes paid must be reduced by any amounts received as a refund of such taxes.
For example, a taxpayer claimed farmland preservation credit (which is considered a refund of property taxes) on his or her Wisconsin return. The taxpayer received a farmland preservation credit in the amount of $600 that was based on property taxes accrued of $6,000. In this example, 10% of the tax is for the home and 90% for the rest of the farm. Thus, for tax purposes, property taxes paid on the entire property are $5,400 ($6,000 less $600 farmland preservation credit). Of this amount, $540 (10% of $5,400) is used to compute the school property tax credit.