Allocation of Property Tax Deduction Three people own a vacation home through an LLC. LLC members A & B own 25% and member C owns 50%. All three members pay equally in to the operating fund to pay the bills. (utilities, maintenace, taxes, insurance, etc.) All three members are allowed to deduct their share of the property taxes on their personal income tax returns. The question is what is the proper allocation of the property tax deduction? Is it one-third for each member (since each member paid one-third of the tax), or should it be proportional to ownership (25-25-50)? |