Is it true that if we pay 2 years properity tax the same year, we can claim the total tax paid in deduction?

Question

say, pay 06 property tax in Jan 07, and pay 07 property tax in Dec 07. This way, we can claim standard deduction for 06 tax return, and 2x properity tax in 07 tax return?

Answer 1

Yes. If you do this, you can itemize in the year that you paid two year's taxes, and still claim the standard deduction for the alternate years.

If you have enough to itemize all years, then this doesn't really save you anything. But if for example your mortgage is paid off or is very low, so mortgage interest doesn't give you a basis to itemize, then this can make a lot of sense to do.

Answer 2

Yes, property taxes are deductible in the year paid, not the year due. If your Itemized deductions are close the the standard deduction, grouping deductions into alternate years and claiming the standard deduction in other years is a common and legal tactic.

Answer 3

Taxes are deductible in the tax year actually paid. However, it's typically more beneficial for you to pay them in the year that it is applicable. Each tax when added to your other possible deductions will help on the itemized Schedule A. However, if your total itemization's are lower than the standard deduction, then it doesn't matter when you pay the taxes, because you will use the standard deduction.

Answer 4

Yes it is deductible in the year that it is paid.

You are aware that there is no deduction in the year that you did not pay the property tax.

Answer 5

anyone has to pay tax. whether a single individual has a private alowance of £5400. in case you earned below that for the time of the tax 3 hundred and sixty 5 days (which runs from April 6 to April 5) you will get a reimbursement. The governmnet website explains all of it