Real Estate Property Taxes

[mircpa]

I have a client who paid previous 3 years(2005/2006/2007) house property taxes arrears in current year i.e. 2008, he is insisting me to include in 2008 individual tax return schedule A, i advised him to amend previous 3 years and include each respective years taxes. Can somebody correct me if i am wrong

thanks

[jainen]

>>I am wrong<<

Assuming the taxpayer uses cash basis accounting, the taxpayer uses cash basis accounting. In fact, what the taxpayer did is sometimes recommended as a planning technique. But don't just look at the amount of the check--it includes non-deductible penalties.

[Jack from Ohio]

Generally...

Real Estate taxes are deductible in the year they are paid (using the cash basis as Jainen mentioned) regardless of when the taxes were assessed. Only the TAX and not service charges, late fees, etc.

[kcjenkins]

"Can somebody correct me if i am wrong"

You are wrong. Taxes that are deductible are deductible in the year actually paid.