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Investors & landlords

As far as I know, all property taxes paid in 2016 for property owned by the taxpayer may be itemized on Sch A. By not putting it as a rental expense, you are reducing the passive loss carryover that would have been available in a successive year. As such it is a timing difference as to when you receive the tax benefit- now or later. I would choose the year you expect to have the higher marginal tax rate.