@hcjontax wrote:
Yes ofc I am the owner of the property. So I paid the $100K property tax lien for the property in 2020, and so I can have a $100K deduction on my individual tax return?
That depends if it is personal or business property. You can deduct property taxes on any property you own on your personal return, but the 2018 tax reform law caps all state and local tax deductions at $10,000 (including property tax, income tax and sales tax). You can list the entire amount because it might be deductible on your NJ state return (although probably not, you can't usually deduct state taxes on a state tax return) but your federal deduction will be capped at $10,000.
If this is business property, you will get a much better tax benefit if you deduct the tax against your business income because it's not capped.
If this is future business property, you may want to capitalize the taxes. That means adding them to the cost of the building, which will increase your depreciation expense. You would recover the taxes over 39 years of business depreciation, but that might be better than having your deduction capped at $10K and losing the rest of the deduction forever.
