1040 Tax Returns - What amounts do you use for Property Tax

[Jeffrey Fung]

When you guys are filing property tax amounts for rental properties, what figures do you use? 

For example, let's say I am filing for 2023: 

2022 -2023: 

Installment 1: $5,200 Paid Nov 2022

Installment 2: $5,200 Paid April 2023

2023-2024

Installment 1: $5,500 Paid Nov 2023

Installment 2: $5,500 Paid April 2024

Are you guys using $5200 + $5500 or $5500 + $5500? 

End of the day it's not a big deal but I am getting conflicting advice from different cpas. 

Thanks, 

[Account Closed]

The method for calculating property tax amounts for rental properties can vary depending on local tax regulations and practices. However, typically, property taxes are based on the assessed value of the property and the applicable tax rate.

In your example, it seems you're referring to the timing of payments rather than the calculation of the tax itself. Generally, property taxes are assessed annually based on the property's assessed value for that particular tax year. So, for filing property taxes for the year 2023, you would use the amounts paid during that tax year, which would be $5200 + $5500 = $10,700.

However, if you're encountering conflicting advice from different CPAs, it's advisable to clarify with them the specific regulations and practices governing property tax filings in your area. They may have insights into local nuances or regulations that could affect how payments are accounted for. It's important to ensure compliance with local tax laws and regulations to avoid any potential issues.