June 6, 2019 7:02 AM
last updated June 06, 2019 7:02 AM
I rent the home to a relative and may not be getting fair rental income. I want to deduct the property taxes with all my other real estate taxes on the itemized deduction section of the tax return.
June 6, 2019 7:03 AM
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.