Gerald purchases a new home on June 30,2016.During January 2017,he receives his real estate tax statement for calendar year 2016 showing $1,800 payable.Gerald pays the $1,800 on March 1,2017.The seller of the residence had credited Gerald with $900 of the 2016 taxes on the closing statement.What is the amount of real estate taxes that Gerald may claim as an itemized deduction in 2017?

Question

Quizplus · Accepted Answer

Gerald can only claim the amount of real estate taxes that he actually paid during the tax year (2017). Although he received a tax statement for calendar year 2016, he did not actually pay the full amount until March 1, 2017. He can only claim the portion of the $1,800 real estate tax payment that he made in 2017, which is $900 (since he was already credited with $900 of the 2016 taxes on the closing statement). Therefore, the correct answer is C) $900.

Gerald Purchases a New Home on June 30,2016