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charlesclloyd
Level 2

Can property taxes paid by an estate be deducted from decedent's return (eg prorata)?

As executor of an estate, I paid 2016 property taxes for the decedent's primary residence in December.  The decedant passed in late October 2016, so lived in the house for 10 months of the year.  Can I apply a prorated portion of the property tax deduction to the decedent's tax return?  Or must all of the deduction be used by the estate's return?

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tagteam
Level 15

Can property taxes paid by an estate be deducted from decedent's return (eg prorata)?

" Or must all of the deduction be used by the estate's return?"

All of the deduction must be used on the estate's income tax return. The estate, itself, actually paid the tax and, with real estate taxes, the deduction accrues to the individual or entity in the year in which the tax is paid (not necessarily the same year the tax is due).

None of the property tax is allowable as a deduction on the decedent's final return because the decedent never actually paid the tax while he was alive.

See https://www.irs.gov/publications/p559/ar02.html#en_US_2016_publink100099616

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3 Replies
tagteam
Level 15

Can property taxes paid by an estate be deducted from decedent's return (eg prorata)?

" Or must all of the deduction be used by the estate's return?"

All of the deduction must be used on the estate's income tax return. The estate, itself, actually paid the tax and, with real estate taxes, the deduction accrues to the individual or entity in the year in which the tax is paid (not necessarily the same year the tax is due).

None of the property tax is allowable as a deduction on the decedent's final return because the decedent never actually paid the tax while he was alive.

See https://www.irs.gov/publications/p559/ar02.html#en_US_2016_publink100099616

charlesclloyd
Level 2

Can property taxes paid by an estate be deducted from decedent's return (eg prorata)?

Very much appreciate the thorough answer.  It makes sense (even though its not what I wanted to hear.)
tagteam
Level 15

Can property taxes paid by an estate be deducted from decedent's return (eg prorata)?

You are most welcome.
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