The 2012 tax season is on the horizon, and Californians will be greeted with a duty to itemize any real property tax deductions we wish to claim. The purpose of this writing is to introduce basic deduction guidelines.

Acceptable Deductions

Generally, California taxpayers may claim deductions on all of their ad valorem real property taxes. This means we can claim deductions for the total real estate taxes we paid on the assessed value of our property over the last year.

These deductions are strictly tailored to the taxes paid on the assessed value of the home, and the deductions cannot include other miscellaneous charges that routinely appear on the tax bill.

Unacceptable Deductions

Not all of the tax bill is deductible. Charges on the tax bill that fund community improvements which do not actually “touch and concern” the subject parcel are not deductible. For instance, a charge for a local school or a local security fee might not be deductible despite the fact that these community improvements work to increase the assessed value of one’s home and thereby increase his property taxes.

Also, fees that have not been incurred by the whole community are generally not deductible. For instance, transfer taxes and stamp taxes are not deductible. Special assessments, penalties and itemized charges for a certain parcel are not deductible by the payee.

Lastly, as a controversial example of the government’s interest in supporting home “ownership,” rent increases brought about by raised property taxes are not deductible.

For more on deduction guidelines see here.