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Question

Can I deduct my 10 years property tax when selling my investment property?

Forum|Forum|3 years ago
May 14, 2022
1 reply
0 views

I did not deduct the property tax for 10 years and allowed my sister to live there. I did not do Section 266 to capitalize on the expenses. Can I deduct the property tax when selling the property?

Thanks.

IRC 266 is not applicable in your situation. thus they should have been deducted in the year paid.

Employee

Q. Can I deduct my 10 years property tax when selling my investment property?

A. No.

You coulda shoulda deducted them, in the year you paid them (as an itemized deduction).

Alternatively, taxpayers could have elected to capitalize (add it to your cost basis) the carrying costs of unimproved and nonproductive real property (Regs. Sec. 1.266-1(b)(1)). The election is made with the tax return by its due date, including extension, by attaching a statement. You cannot wait until you sell the property, but must have made that election each year.