Can you clarify why property taxes on an investment property would be considered personal expenses and deducted only on Schedule A? I would assume property taxes, utilities, insurance, and all other holding costs incurred while upgrading the property to prepare for the sale would be added to the basis of the property. I'm referring to them as "selling expenses" because actual selling expenses like agent commissions, closing costs, title insurance, etc. are added to the basis in the exact same manner for calculating the capital gain.
Also, how do I deduct 75% of the property taxes against the 2023 rental income if the expense wasn't paid until January 2024? If I can't deduct them on 2023 taxes, then next year, when doing taxes for 2024, how do I account for the property taxes? Do they just get added to the basis as well? Thx
