Gerald purchases a new home on June 30, 2017. During January 2018, he receives his real estate tax statement for calendar year 2017 showing $1,800 payable. Gerald pays the $1,800 on March 1, 2018. The seller of the residence had credited Gerald with $900 of the 2017 taxes on the closing statement. What is the amount of real estate taxes that Gerald may claim as an itemized deduction in 2018?

Question

Quizplus · Accepted Answer

Gerald may claim the portion of the real estate taxes that he actually paid during the calendar year, which is $900 ($1,800 paid minus $900 credit received). Therefore, the correct answer is choice C, $900.

Gerald Purchases a New Home on June 30, 2017