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Investors & landlords
As the seller, you are responsible for and can deduct the property taxes that cover the time period up to, but not including, the date of closing. If your prorated payment corresponds to that time period, you can deduct it on this year's return. If the taxes are for a rental property, they are deducted as a rental expense on Schedule E.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
‎June 5, 2019
10:45 PM