Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Increased standard deduction for property taxes

Administering Agency/Entity Internal Revenue Service
Short Description Allowed taxpayers who pay property taxes on owner-occupied homes, but do not itemize, to take an increased standard deduction of up to $500 ($1,000 if married filing jointly). To be deductible, property taxes must be based on an interest in real property, and must be levied for the general public welfare at a like rate for all properties in the jurisdiction. Real-estate-related charges for services, such as unit fees for water usage or trash collection, are not deductible. This deduction expired December 31, 2009.
Primary Purpose Emergency assistance to housing market or current homeowner
Type of Housing Supported Homeownership
Type of Assistance Tax exclusion, exemption or deduction
Estimated Revenue Loss1 $500,000,000; revenue losses for fiscal year 2010 were estimated by the Joint Committee on Taxation. This provision expired on December 31, 2009.

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