Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated almost 8 years ago,
Need help from the tax gurus
I bought a rental property in September 2016 and received credit on my closing statement for property taxes for $3,000. I paid property taxes of $4,600 in January 2017 for the 2016 tax year. From what I have researched, I should apply this $3,000 credit against the taxes I paid of $4,600, and thus I would report on my Schedule E total taxes paid of $1,600.
The dilemma I have is I plan to use cash basis. Therefore I received the credit in 2016 and paid the taxes in 2017. Should I just wait until filing my 2017 taxes to use the $3,000 credit and ultimately report the $1,600, or should I use the $1,600 when filing my 2016 taxes?
Thank you for your help!
Craig