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Level 1
posted Feb 3, 2025 6:40:13 PM

Full or Prorated Real Estate Taxes for Rental Property

Hello. I am preparing my 2024 taxes. The rental property to which I'm referring was converted to personal use in Aug 2024. However, my question concerns 2023 property taxes which were not paid until 2024. The property was rented throughout 2023 so I'm wondering if I can enter the full 2023 tax amount on Schedule E (since the property was a rental for that full year) or if I must prorate the amount because the tax was paid in 2024 when the rental was converted for personal use. I have prorated the mortgage interest because it applies to 2024, but I don't know if this is appropriate for the 2023 property taxes paid in 2024. Thank you.

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1 Best answer
Employee Tax Expert
Feb 3, 2025 7:46:50 PM

If what you paid in 2024 was 100% for 2023 property tax, then you can deduct the entire amount on your 2024 Schedule E for your rental property.

1 Replies
Employee Tax Expert
Feb 3, 2025 7:46:50 PM

If what you paid in 2024 was 100% for 2023 property tax, then you can deduct the entire amount on your 2024 Schedule E for your rental property.