I am a newbie. I just bought a property January 28, 2013. have a question about property tax deduction. I got 2 supplemental bills with a different fiscal year last year. I paid them off in 12/31/13 with a total of $6347 by check. How much do I input to turbo tax?
Fiscal Year July 1, 2012 - June 30 2013.
First installment $944
Second installment $944
Fiscal Year July 1 2013 - June 30 2014
1st installment $2229
2nd installment $2229
And one more property tax bill, that is paid by escrow account
Fiscal year July 1 2013 - June 30 2014
1st installment $862, paid in 2013
2nd installment $862, paid in 2014
Do I put what I paid or do I have to prorate first and second installments? I am very confused of what I have to put to get the deduction -_-;
Do I go with "improvements" value $385777/27.5 years to get my depreciation of the building? Should I get it from somewhere else?
Thank you for all your help.
@Otto O. - I think you can deduct only what you paid. but if your taxes are in arrears then the seller actually paid the taxes at closing so your first year you don't actually deduct?
As far as depreciation, you would use your purchase price minus land (assessed separate) and then add in capital improvements.
@Steven Hamilton II am I correct?
Brianna summed up the basics of it; however, The HUD clears everything up.