Refund of real estate taxes on related to Schedule E vacation rental property

[thecraigs4]

I received a refund on real estate taxes for 2021-2023 in 2024.  Do I report this as income on my Schedule E or do I show it as a negative expenses for real estate taxes in 2024?

[ThomasM125]

You would apply that to your real estate taxes in 2024, as a reduction on them.

[thecraigs4]

Thank you.  The amount of the refund will make the real estate tax expense into a negative balance for the year.  How would TurboTax handle a negative expense entry?

[DianeW777]

It depends.  If this was a refund of real estate taxes on your rental property, then you would have deducted those taxes in the years you paid them. Report the refund as other income on your rental property.

@thecraigs4