In 2006, I paid my delinquent property taxes for the years
2003, 2004, & 2005. I have not yet filed my tax returns for 2003, 2004, or 2005. When filing these years' tax returns should I deduct the property taxes in the year that they were due or do I wait and deduct all three years property taxes on my 2006 tax return which is the year that they were paid?
Deductible only in the year actually paid (but not late penalties or interest).
Assuming you're a cash-basis taxpayer, you deduct on your
2006 return.-- 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
snipped-for-privacy@atlasmiami.com posted:
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
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