Although they sound almost identical, property tax and personal property tax are two entirely different things.
Let's start with the colloquial term property tax – a tax that, according to the IRS, doesn't exist.
When people refer to "property taxes" (as in "How do I deduct my property taxes?") what they're really asking about are real estate taxes.
Real estate taxes are imposed on immovable property – land and dwellings that are permanently attached to the ground such as houses, buildings, cabins, farms, ranches, etc.
On the other hand, personal property tax (at least for tax deduction purposes) is a yearly state or local tax imposed on movable assets – things like mobile homes, motorhomes, RVs, campers, boats, and airplanes. The portion of your car registration fee, if any, that is based on the value of your car is also a personal property tax.
Taxwise, about the only thing property taxes real estate taxes and personal property taxes have in common is that both are reported as itemized deductions on Schedule A (lines 6 and 7, respectively).
Where do I enter real estate taxes?
To enter real estate taxes you paid on a rental property, click here and follow the directions in the Entering rental income and expenses section of that article.
To enter real estate taxes you paid on your main home, a vacation or secondary home, or land:
- Click Federal Taxes (or Personal if using Home & Business) > Deductions & Credits > Explore on My Own.
- Then, on the Your 2012 Deductions and Credits screen, click Start or Update next to Property Taxes in the first section, Your Home.
- Follow the onscreen instructions.
Click here for more in-depth information about real estate taxes.
Where do I enter personal property taxes?
As we mentioned earlier, car registration fees that are based on the value of the vehicle are considered personal property tax.
For tax year 2012, this applies to vehicles registered in Alabama, Arizona, Arkansas, California, Colorado, Georgia, Iowa, Indiana, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, South Carolina, Washington, and Wyoming.
To enter car registration fees for nonbusiness vehicles:
- Click Federal Taxes (or Personal if using Home & Business) > Deductions & Credits > Explore on My Own.
- Then, on the Your 2012 Deductions and Credits screen, click Start or Update next to Car Registration Fees in the Cars and Other Things You Own section.
- Follow the on-screen instructions.
For all other personal property taxes, follow the same directions except click Start or Update next to Personal Property Taxes in the Cars and Other Things You Own section.
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