Rental real estate tax exception to $10,000 deduction limitation?

[saksuakcabm]

I am the successor trustee and beneficiary of my mother’s revocable living Trust which I inherited upon her death 12/21/21.  Mom posthumously filed 1040SR for 2021 with Schedule E for rental income from real estate.  The Trust filed 1041 for 2022, again with Schedule E.  The Trust sold the real estate 04/14/22 and I received the proceeds.  The Trust closed.

In 2023 the county tax assessor issued an unsecured property tax bill, re-assessing the property tax for the 114 day period after my mother’s death to the date of sale (12/21/21 to 04/14/22).  The bill was addressed to me as trustee and I paid this bill myself.

In completing my personal 1040SR for 2023, TurboTax is not allowing the property tax bill to be deducted in schedule E, because there is no income in 2023 from a property sold in 2022.  Doesn’t Section 212 of the IRS code state that “income” includes prior, current and subsequent years?

The property tax on my home already exceeds the $10,000 cap.

Is there no way to harvest a benefit from the property tax bill paid?  Thank you. 

[DianeW777 · Accepted solution]

No, you cannot use the property tax payment on Schedule E since it no longer exists.  And as you noted it will not help your itemized deductions.

My advice would be to go to the agent or legal team who assisted with the property sale, it was the responsibility of clear title to make sure all of this was paid and free of any property tax debt at the time of sale.