Is deduction for property taxes based on date of tax paid to gov't or date paid into escrow when converting from residence to rental?

[seanwsmithtaxes88]

I converted home to rental. Do I just prorate the annual tax paid for the year by % of time it was a rental or does the date the taxes paid matter? For example, since tax is paid only 1 time per year, would I deduct 100% of it if it were while it was a rental vs. 0% if while it was a residence, or does the fact I pay monthly payments to escrow mean I just do the proration regardless of what date the tax was actually paid? Similarly, I would assume the # is the actual tax paid, not the amount paid into escrow from estimates, correct?

[KrisD15 · Accepted solution]

Prorate for the time it is a rental, however it needs to have been paid in that tax year. 

[seanwsmithtaxes88]

Thank you. And just to confirm, when I mark in the above section that it was converted and only in service part of the year, this does NOT roll down the proration in the expenses section. In other words, I have to do the proration calc vs TurboTax doing it because I entered the partial year info on the header for the property. Thank you!

[PatriciaV · Accepted solution]

You are correct. You will calculate the prorated expenses to report for the rental activity. In some cases, TurboTax will offer to do the math for you or to transfer the personal use portion to Schedule A. Pay close attention to the information on each page to be sure you enter your expenses accurately. The blue "Learn More" links are often helpful in this section of TurboTax.