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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7252
Experience:  15years with H & R Block. Divisional leader, Instructor
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A. Can I claim 2 years worth of real estate taxes if paid in

Resolved Question:

A. Can I claim 2 years worth of real estate taxes if paid in that year--i just learned that i should have paid my 2010 property taxes by dec 2010 and not by jan 31, 2011 (when they are due)? So what if I pay 2011 taxes in Dec 2011--will I get to claim 2010 & 2011 property taxes on my 2011 return since they were paid in 2011.
Submitted: 3 years ago.
Category: Tax
Expert:  Robin D. replied 3 years ago.

Robin D :

Hello and thank you for using Just Answer.

Robin D :

You will want to include all actual real estate taxes paid in the tax year. If you paid a prior year tax amount you can deduct the tax amount only. Make sure that you do not include any interest added to the final bill for the late payment. If you did not actually pay the 2010 real estate tax in 2010 then you can claim the amount of tax paid in 2011 on yor 2011 return.
In short, yes, you can claim both years tax paid in the year they were actually paid.

Customer :

Does income level affect the benefit of itemized deducations? It's appearing in my tax program this year that with or without the property tax calculated in the itemized deductions my amount owed in taxes does not change. Is there a table that shows this?

Robin D :

The limitations that were in place have run out. Your Schedule A deductions are no longer limited because of your Adjusted Gross Income.
Here is a link to the Instructions for Schedule A 2010
http://www.irs.gov/pub/irs-pdf/i1040sca.pdf

Customer :

Why is my tax program not adjusting amount owed when I enter my property tax ($12,000)? It shows me owing the same amount of taxes whether I put in $0 for property tax or $12,000 or $5000. I have roughly extimated my itemized deductions to be $15,000 and AGI $292K. The program does show a change in taxes owed if I enter more $ into charitable contributions.

Customer :

Does AMT have something to do w/ the benefit of property taxes not benefiting/lower taxes owed?

Robin D :

Are you showing that you are subject to AMT?

Robin D :

The only itemized deductions allowed for AMT are:



  • Medical and dental expenses more than 10% of the regular tax AGI

  • Charitable donations

  • AMT investment interest to the extent of net AMT investment income

  • Qualified housing interest

  • Casualty losses

  • Miscellaneous deductions not subject to the 2% of AGI limitation



This would account for the charitable making a difference

Robin D :

Even though the Schedule A deductions are no longer limited the AMT did not really change as far as limiting what you can use

Robin D :

The AMT tax rate is a flat 26% for income up to $87,500 - $175,000 if married filing jointly. Income more than those amounts is taxed at a rate of 28%. Income taxed at a lower rate – like long-term capital gains or qualified dividends – is still subject to those rates, not the AMT tax rate.

Customer :

Yes, I'm showing an AMT

Robin D :

Then that is why the difference is not benefiting you. (See above)

Customer :

Oops--did not finish. Yes, I'm showing owing $1300 in AMT. Another layer of taxes to confuse me I guess.

Robin D :

Yes, AMT is still ensnaring individuals that other wise would not be subject

Customer :

Any way to avoid or lower? Or is it the trigger of income level?

Robin D :

In most cases it is triggered by the income level but could for some individuals be triggered becaosue of the number of exemptions they claim.

Robin D :

The IRS has an AMT Assistant that helps alot of people understand their situation better

Customer :

Since it appears that the property taxes won't help us since we can claim sales tax because we don't have state income tax can we make an election to put 2010 property taxes as an investment expense/elect to capitalize taxes...constructive receipt??...I'm using phrases that a friend suggested I research so I might not have phrased this correctly. Thanks for the link to AMT.

Robin D :

Not if this is your personal home. It would need to be held for investment or be income producing.

Customer :

So, it appears that not paying the tax in 2010 is not going to help me that much this year since AMT kicks in; if our salary does not lower then there appears to be no benefit to pay 2011 taxes by Dec 2011. (no late fees--taxes are due end of January for previous year). this problem "arose" because we did not do escrow w/ our mortgage when we bought the house Dec 30, 2009. This is the first year we have paid our taxes ourselves and I was unaware that taxes had to be pd in the year they were deducted. trying to decide how big of a mistake I made by not payi

Customer :

....not paying the property taxes in Dec 2010 (again--no late fees included).

Robin D :

Since so many other items fall into the AMT it would really be beneficial for you to use the assistant and then you would be able to better see what the real trigger was for you specifically. Everything is relevant and evryone i, no matter how similar they seem, have different tax situations.

Robin D :

Since you already have the figures you need to use the asistant (Have your draft 2010 Form 1040 available, completed through Line 44. You will be entering information from the 1040 and Schedule A (if used) you will be able to see more clearly what really happened for you

Customer :

Is the assistant that you refer to w/in the tax program?

Robin D :

No, you need to use the link I gave you (I am not aware of the program you are using so I do not know if they have any tips or specific answers to the AMT). The link is in the IRS website so it is secure.
Not paying property taxes in the year owed can be one situation but the overall is more important especially if this is your first year with AMT

Robin D :

I know this will help you but even after you click ACCEPT, you can always come back here by logging back in.
I sincerely XXXXX XXXXX chat was helpful

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7252
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and other Tax Specialists are ready to help you

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