Question

in your own words, please explain section 1.164-1(a)(2) in the internal revenue code

Answer 1

This section deals with State and local personal Property taxes.

These are the taxes imposed by state or local authority based on value of individual property.

Each state will have own specific form, in that form they have to report their property personal tax details.

If they are paying personal Property taxes to their Govt the Internal Revenue service allows to claim deduction for it on their Federal tax return.

Paying personal tax is not enough to claim deduction.

In addition to Internal Revenue service requirements they must be eligible to present individual items.

Effective property tax rates differ wisely across states hence it is difficult to compare.

In addition local governments also use different Methods to calculate Real property tax base.

In 2018 year they began that individuals limited in their ability to deduct non-business taxes.

Before that even non related business are eligible to claim deduction.