David,
Thank you for the quick response.
Unfortunately I think you misunderstood what I wrote. The seller did not pay the taxes for 2024 because they aren’t due until June 2025 and the seller no longer owns the property. I own the property and will pay the property taxes for 2024 in June 2025.
I received a credit for the portion of the year the seller owned the property in 2024. I will use that credit to pay the 2024 property taxes in June 2025.
Do I record that credit as income since I’m doing cash accounting and not accrual? And then as an expense in 2025? Do I simply ignore it and pay the property taxes in June 2025 and then expense them on my 2025 return in 2026?
Thanks
Ron
