Paid 2020 real estate taxes at sale of my rental. Where to enter?

[busmaster44]

I sold my rental condo in 12/2020, and I had to prepay the property tax for 2020 at closing.  Where do I report this, and is it tax deductible?  Thanks,. 

Steve

[HelenC12]

If you paid federal estimated income tax, that is not tax deductible. The amount paid is added to the federal income tax paid amount, along with your W-2 Federal Income Tax withholding (if any).

•  Estimated state income taxes are not deductible against your rental gain, if any.

If you paid state estimated income tax, you may be able to deduct it as an Itemized Deduction on your Federal Form 1040, Schedule A, if you itemize.

• We’ll use them to determine whether you’d benefit from itemized deductions instead of a standard deduction.

To enter your estimated income tax payment, type estimates paid in the search box and click on the Jump to link. Enter the federal estimated taxes and the state estimated taxes in the section provided.

• Your state tax payments are automatically transferred to your state return.

You can also use the following step by step instructions.

1. Log onto TurboTax.
2. Select on the blue Pick up where I left off button.
3. On the left navigation bar, click on Federal.
4. Click on the Deductions & Credits tab.
5. At Did you make any estimated tax payments?, select Yes, I did.
6. Continue with the onscreen interview until you get to the Your tax breaks screen. 
7. Scroll down to Estimated Tax Payments and select Start/Add/Edit.
8. At Estimated Tax Payments, click Start.
9. Scroll down to Federal and State estimated taxes for 2020 and start.
10. Continue with the onscreen interview. 

[busmaster44]

Hello.

I'm confused why you are speaking of income taxes..  The question is regarding real estate (property) taxes I paid for a rental property I sold.  Thank you.  

[JohnB5677]

You should have prepared a Schedule E that reflected the income and expenses that you incurred while you owned the rental property.  The Real Estate taxes should be included on the Schedule E.

Even if you had no income before you sold it, you can still include your expenses on the Schedule E.

[busmaster44]

Thank you John.  I did my schedule E, but I didn't see a line for prepaid real estate taxes.   Is there one?

[JohnB5677]

It does not mater that you paid the real estate taxes at closing.  It just maters that you paid them in 2020.

When you go in to post your rental Expenses

1. Expenses
2. I'll choose what I work on
3. There is a dashboard of expenses
4. Post Real Estate Taxes to the appropriate block.
5. Also post any other operating expenses.