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Updated about 8 years ago on . Most recent reply presented by

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Craig Poskus
  • Spring, TX
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Need help from the tax gurus

Craig Poskus
  • Spring, TX
Posted

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

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