Kathleen Pender wrote in her Chronicle column of November 24, 2011 that California homeowners are not be entitled to deduct their entire California property tax payments. Ad valorem taxes are deductible which are taxes based on a percentage of a home’s assessed value. Some portion of local benefit taxes are deductible. The 2012 California tax returns will likely include spaces for the homeowner’s parcel number, amount of taxes paid and the non-deductible amount. Information is posted at sfg.ly/rHNwOA. Both the California Tax Franchise Board and the IRS expect to collect more in taxes due to smaller deductions.
