Property tax paid after tenant vacates... Sched E deduction?

Forum|Forum|2 years ago
April 10, 2024
2 replies
15 views

Property assessed for prior year and second payment made after tenant vacates.

Can this be still considered a rental expense since it was assessed for the period that it was a rental?

(I know you all have time to answer since this is not a busy week... ha!)

ProSeries Professional

This topic has been closed for replies.

BobKamman

Level 15

Then it was sold? Converted to personal use? Burned down? Vacant because of cicada invasion? Or just waiting for another tenant?

L

linduca1216Author

Level 6

converted to personal use....

might have been the cicadas, but I don't think so.. 🙂

L

linduca1216Author

Level 6

Might this situation still apply ?

In the instant case, expenses represented by the debts would have been deductible under section 162 of the Code had they been paid by the taxpayer while he was still carrying on the business. The fact that the business has been discontinued does not prevent the deduction of expenses otherwise allowable to an individual taxpayer using the cash receipts and disbursements method of accounting. See Waters F. Burrows v. Commissioner, 38 B.T.A. 236 (1938), acquiescence, C.B. 1938-2, 5. Also, compare I.T. 4071, C.B. 1952-1, 148.

(It was a bit ago....)

T

TaxGuyBill

Level 15

Let's reverse this scenario. Let's say it was personal use for two years, then converted to a rental in year three. Would you not deduct the property tax in year three on Schedule E because it was assessed in year two (when the home was personal use)?

L

linduca

Level 4

I don't know that I would... just as if water bill for last part of year was paid at beginning of rental period. It had nothing to do with the rental....

Sign up

Login with SSO

Let's get you signed in

Login with SSO