In February of the current year (assume a non-leap year),Ken and Kelsey received their property tax statement for last calendar-year taxes of $1,600,which they paid to the taxing authority on March 1 of the current year.They had purchased their home on May 1 last year.What amount of property tax on this statement may they claim as an itemized deduction this year?
A)$0
B)$1,069
C)$1,074
D)$1,600

Question

Quizplus · Accepted Answer

The property tax deduction is prorated based on the number of days of ownership during the tax year. Ken and Kelsey owned the home for 244 days (May 1 to December 31) out of 365 days in the year. Therefore, they can deduct 244/365 * $1,600 = $1,074.

In February of the Current Year (Assume a Non-Leap Year),Ken