Basic Federal Income Taxation: Deductions: Deductions for Taxes

This lesson will demonstrate the ways in which taxes paid may be deducted under Section 164 of the Tax Code and related regulations.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Recognize which taxes are deductible under § 164(a)(1)-(4) and the § 164(b)(5) election.
2. Distinguish whether taxes are deductible under the flush language of § 164(a) or are non-deductible under § 275.
3. Describe how to apportion real property taxes between seller and buyer under § 164(d).
4. Acquire familiarity with multiple examples of tax vs. non-tax payments.