For property located in NYC, is the 2023 amount of real property taxes paid the amount paid for the July 2022 to June 2023 fiscal year or the actual amounts paid in 2023?

[jamesnaidu]

I believe I qualify for the Real Property Tax Relief Credit and want to make sure I'm inputting the correct amount for real property taxes paid and STAR credit.

[LenaH]

Real property taxes means all real property taxes you paid in 2023. For more information on Form IT-229 (Real Property Tax Relief Credit), please see these instructions. 

[jamesnaidu]

Thanks. This is pretty tricky since the STAR exemption is granted for a fiscal year. This would imply that the STAR exemption amount to list would be half of the exemption for the fiscal year 2022-2023 + plus half of the exemption for the fiscal year 2023-2024. Right?

[LindaS5247]

In general, individual taxpayers are considered to be on a "cash basis" in that you report income received in that tax year and expenses (property taxes, etc) that were paid in that tax year. You should enter your STAR exemption as the amount that your received in 2023.

From the instruction to Form IT-214:

Line 23 Homeowners: Enter any real property taxes paid for your residence by you or your spouse during 2023 to a county, city, town, village, or school district. If your residence is on more than one acre of land, only enter the amount of taxes paid on the residence and the one acre of land around it. See the definition of residence above. In computing the amount of taxes paid, you must reduce taxes paid by any School Tax Relief (STAR) credit (Tax Law section 606(eee)).

Click here for instructions for Form IT-214.

Click here for information on New York State's Real Property Tax Credit.

Click here for additional information on real estate property taxes.

Click here for information on the cash basis for accounting.