Real Estate Tax Bills Question, Please

Feb 19, 2010 3 Replies

Hello,



Every year, we always receive 4 quarterly real estate tax bills for our residence from our town. I pay them when received, and deduct the sum of the 4 payments on our taxes for that year.



Last year, the town had some problems in getting all 4 of the bills out in 2009, and only sent the first 3.



The 4th came a few weeks ago, which resulted in its being paid in 2010.



Question: Can I deduct all 4 payments on my 2009 taxes even though one was done in 2010 ?



Or, do I have to wait until the 2010 taxes are submitted next year to include this last payment



(which was for the 2009 taxes even though received and paid in 2010) ?



Thank you very much, Bob


"Bob" wrote

Nope.

Yup.

Almost all taxpayers are on a cash basis, which means it's income when you receive it and an expense or deduction when you pay it.

You deduct it when you paid it. If you had "prepaid" the fourth installment in 2009, because you knew it would be coming, then you could have deducted it in 2009.

Cash basis taxpayer: No. You deduct according to when paid.

Accrual basis taxpayer: According to its liability date. Some jurisdictions attach liability as of the last day of the period, while others defer to the due date.

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