Which of the following statements regarding who gets to deduct the real property taxes when real...

Which of the following statements regarding who gets to deduct the real property taxes when real property is sold mid-year is correct?

Multiple Choice

The seller gets to claim the entire deduction.

The buyer gets to claim the entire deduction.

Whoever pays the taxes gets to claim the deduction.

The deduction is pro-rated based on the number of days owned.

Solutions

Expert Solution

Option (d) is correct

The deduction is prorated based on the number of days owned.

The seller will be treated as having paid the property taxes up to the date of sale, and the buyer will be treated as having paid the taxes due after the date of sale.

ekkarill92 answered 1 year ago

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