Property tax for home

[jackkgan]

Hi there,

For property tax that I enter in Turbo tax, should I take average of 2018 and 2019? For example, if my property bill of 2018 shows x for each installment and if the property bill for 2019 shows y for each installment, then should I do (x+y)/2? Where can I find this info on what is the right way to compute this? Thanks so much!

[Carl]

You don't average anything. For your 2019 tax return you enter the total amount of property taxes paid in 2019. It does not matter what tax year you may have paid "FOR". This information "should" be on your county's property appraiser's web site.

[xmasbaby0 · Accepted solution]

No you do not average your property taxes.  You enter the amount you actually paid in the specific tax year.  What matters is the year you paid the tax---not what year it was "for."  If you paid a property tax bill in 2018 it goes on your 2018 tax return.  If you paid a property tax bill in 2019 it goes on your 2019 tax return.

And...there is a $10,000 cap on the itemized deducction for SALT (state and local taxes)  which includes your property tax.

[VolvoGirl]

NO.  Only what you actually paid during the year, no matter which installment it was for.  

[Anonymous]

another rule if your taxes are escrowed. the deposits into the escrow a/c are not deductible. only in the year money is taken out to pay the taxes do you get a deduction.   now it is possible that you can have almost 2 years worth of taxes being deductible in the same year.  example: you sold your house and had not yet paid the prior year's taxes. then the closing statement would have a provision for the unpaid taxes for the previous year + a proration of taxes for the current year.  

[jackkgan]

Thanks a lot!