Can I add Property Tax paid by builder to Rental expense?

[jackkgan]

I bought a new construction house on Dec 10th, 2025. I put it up for rental immediately and got tenants in Feb 2026. I am entering that in Turbo Tax under Wages and Income  - Rental Properties .

For the screen : Report Real Estate Taxes: On the county site, I see Property Tax paid for 2 installments one on Dec 10th, and another one that I paid on Dec 30th  2025. The escrow officer confirmed that the builder paid the first one on Dec 10th before and outside the escrow. Should I include that 1st installment paid by the builder also in the Real Estate Taxes OR should i I only enter the 2nd installment I paid? Thank you.  

[ThomasM125 · Accepted solution]

You can only deduct the 1st installment of real estate tax if you paid it. Since the builder paid it, you would have to see if you reimbursed him for the tax, as would be the case if it showed up on the closing statement when you closed on the building. If so, then you can deduct it.