Property tax paid after tenant vacates... Sched E deduction?

[linduca1216]

Property assessed for prior year and second payment made after tenant vacates.

Can this be still considered a rental expense since it was assessed for the period that it was a rental?

(I know you all have time to answer since this is not a busy week...   ha!)

[BobKamman]

Then it was sold? Converted to personal use?  Burned down?  Vacant because of cicada invasion?  Or just waiting for another tenant?

[linduca1216]

converted to personal use....

might have been the cicadas, but I don't think so..     🙂

[linduca1216]

Might this situation still apply ?

In the instant case, expenses represented by the debts would have been deductible under section 162 of the Code had they been paid by the taxpayer while he was still carrying on the business. The fact that the business has been discontinued does not prevent the deduction of expenses otherwise allowable to an individual taxpayer using the cash receipts and disbursements method of accounting. See Waters F. Burrows v. Commissioner, 38 B.T.A. 236 (1938), acquiescence, C.B. 1938-2, 5. Also, compare I.T. 4071, C.B. 1952-1, 148.

(It was a bit ago....)

[sjrcpa]

Taxpayer is cash basis. At the time the expense was paid, it was for a personal use property.

[BobKamman]

I vote for deducting the taxes attributable to the period of rental. That court decision might have been 1938, but it was still alive and well in 1967. See Rev Rul 67-12:

https://www.bradfordtaxinstitute.com/Endnotes/Rev_Rul_67-12.pdf

[TaxGuyBill]

Let's reverse this scenario.  Let's say it was personal use for two years, then converted to a rental in year three.  Would you not deduct the property tax in year three on Schedule E because it was assessed in year two (when the home was personal use)?

[linduca]

I don't know that I would... just as if water bill for last part of year was paid at beginning of rental period.  It had nothing to do with the rental....