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build a new sidewalk). The cost of a property improvement is added to the basis of the property. However, a charge is deductible if it is used only to main- tain an existing public facility in service (for example, a charge to repair an exist- ing sidewalk, and any interest included in that charge). If your mortgage payments include your real estate taxes, you can deduct only the amount the mortgage company actually paid to the taxing authority in 2015. If you sold your home in 2015, any real estate tax charged to the buyer should be shown on your settlement statement and in box 5 of any Form 1099-S you received. This amount is considered a refund of real estate taxes. See Refunds and rebates, later. Any real estate taxes you paid at closing should be shown on your settlement statement. You must look at your real es- tate tax bill to decide if any nondeductible itemized charg- es, such as those listed earlier, are in- cluded in the bill. If your taxing authori- ty (or lender) doesn't furnish you a copy of your real estate tax bill, ask for it. Refunds and rebates. If you received a refund or rebate in 2015 of real estate taxes you paid in 2015, reduce your de- duction by the amount of the refund or rebate. If you received a refund or rebate in 2015 of real estate taxes you paid in an earlier year, don't reduce your deduc- tion by this amount. Instead, you must include the refund or rebate in income on Form 1040, line 21, if you deducted the real estate taxes in the earlier year and the deduction reduced your tax. See Recoveries in Pub. 525 for details on how to figure the amount to include in income. Line 7 Personal Property Taxes Enter the state and local personal prop- erty taxes you paid, but only if the taxes were based on value alone and were im- posed on a yearly basis. Example. You paid a yearly fee for the registration of your car. Part of the fee was based on the car's value and part was based on its weight. You can deduct CAUTION ! only the part of the fee that was based on the car's value. Line 8 Other Taxes If you had any deductible tax not listed on line 5, 6, or 7, list the type and amount of tax. Enter only one total on line 8. Include on this line income tax you paid to a foreign country or U.S. possession. You may want to take a credit for the foreign tax instead of a deduction. See the instructions for Form 1040, line 48, for details. Interest You Paid Whether your interest expense is treated as investment interest, personal interest, or business interest depends on how and when you used the loan proceeds. See Pub. 535 for details. In general, if you paid interest in 2015 that applies to any period after 2015, you can deduct only amounts that apply for 2015. Lines 10 and 11 Home Mortgage Interest If you are a homeowner who received assistance under a State Housing Finance Agency Hardest Hit Fund program or an Emer- gency Homeowners' Loan program, see Pub. 530 for the amount you can deduct on line 10 or 11. A home mortgage is any loan that is se- cured by your main home or second home. It includes first and second mort- gages, home equity loans, and refi- nanced mortgages. A home can be a house, condomini- um, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleep- ing space, toilet, and cooking facilities. Limit on home mortgage interest. If you took out any mortgages after Octo- ber 13, 1987, your deduction may be limited. Any additional amounts bor- rowed after October 13, 1987, on a line-of-credit mortgage you had on that TIP TIP date are treated as a mortgage taken out after October 13, 1987. If you refi- nanced a mortgage you had on October 13, 1987, treat the new mortgage as tak- en out on or before October 13, 1987. But if you refinanced for more than the balance of the old mortgage, treat the excess as a mortgage taken out after Oc- tober 13, 1987. See Pub. 936 to figure your deduction if either (1) or (2) next applies. If you had more than one home at the same time, the dollar amounts in (1) and (2) apply to the total mortgages on both homes. 1. You took out any mortgages after October 13, 1987, and used the proceeds for purposes other than to buy, build, or improve your home, and all of these mortgages totaled over $100,000 at any time during 2015. The limit is $50,000 if married filing separately. An example of this type of mortgage is a home equity loan used to pay off credit card bills, buy a car, or pay tuition. 2. You took out any mortgages after October 13, 1987, and used the proceeds to buy, build, or improve your home, and these mortgages plus any mortgages you took out on or before October 13, 1987, totaled over $1 million at any time during 2015. The limit is $500,000 if married filing separately. If the total amount of all mort- gages is more than the fair market value of the home, ad- ditional limits apply. See Pub. 936. Line 10 Enter on line 10 mortgage interest and points reported to you on Form 1098. If your Form 1098 shows any refund of overpaid interest, don't reduce your de- duction by the refund. Instead, see the instructions for Form 1040, line 21. If you and at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mort- gage, and the interest was reported on the other person's Form 1098, report your share of the interest on line 11 (as explained in the line 11 instructions). If you paid more interest to the recip- ient than is shown on Form 1098, see Pub. 936 to find out if you can deduct the additional interest. If you can, attach a statement to your paper return explain- CAUTION ! A-7