Are property taxes deductible in the year paid or the year due?

Deductible only in the year actually paid (but not late penalties or interest).

Assuming you're a cash-basis taxpayer, you deduct on your

-- Phil Marti Clarksburg, MD

wrote

Property tax is deductible in the year paid, so report them on Schedule A for 2006.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

Deductions can be taken only in the year payment was actually made. In your case, all property taxes should be reported on your 2006 return, Schedule A, along with other deductible items paid in 2006. [Note: A check written and mailed on December 31 could be included, even if not cashed until after January 1 of the following year.] Bill

Assuming you are -- like the vast, vast majority of individual taxpayers -- a cash basis taxpayer, it's deductible in the year paid.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

You deduct taxes in the year you actually pay them (2006). As you were delinquent, you also had to pay a penalty. You can not deduct the penalty.

Taxpayers are on a cash basis. Therefore you deduct the property taxes on the tax return for the year that you paid the taxes. (if 2006 then 2006 return).

Missy Doyle