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Darasc0211
Returning Member

how to figure our how much property tax I can deduct in schedule E during the renting period for a rental property that was sold

Hi,

I sold my rental house on 3/18/2020. I need to figure out how much property tax I can deduct in schedule E for the 3 months of renting before I sold the house. (I do not live in the rental house). I have the following questions: 

 

On the closing document I got two different tax credits:

 

1) The 1st tax credit ($1213) is the credit towards the $4268 city/town tax I paid in 2019. This city/town tax($4218) covers 7/1/2019 to 7/1/2020 time period, so half of the amount (4168/2=$2134) is actually for year 2020. since I got $1213 credit, Can I deduct $2134-1213=$921 property tax in schedule E although I paid this tax($4268) in 2019 and already claimed a deduction in 2019? Or I cannot deduct it because the money was paid in 2019 instead of 2020?

 

2) The 2nd tax credit is $2284 for the county tax I paid in Jan 2020 which is $3683. This tax covers 11/1/2019 to11/1/2020,  so 10 months of this amount (3683/12*10=$3069) is for yr 2020. Should I deduct 3069-2284=785 in schedule E, or should I simply deduct 3683-2284=1399?

 

3) My 1099-S states buyer's part of real estate tax is $3519.03. How should I use this value to evaluate the property tax I deducted in schedule E? Is this just an FYI for IRS?

 

Thanks.

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