Question

X Corporation owns real and personal property in New York. Under New York law, X is liable for taxes on real property on the first day of any payment date if it owns real property in the state. The dates are 2/1, 5/1, 8/1, 11/1. For 20X7 the amounts due on each date are $300. Under New York law, a taxpayer is liable for personal property taxes on property held on the first day of the year, payable 60% on July 1 following, and 40% on the 1st day of February of the succeeding year. For 20X7, X pays $300 on 11/1/X7 for the last quarter real estate taxes, and $6,000 of personal property taxes on 7/1/X7. The remaining $4,000 of personal property taxes are paid on 2/1/X8. When may these taxes be deducted?

Answer 1

Generally property taxes are allowed as deduction in the year in which they were paid.

This can be claimed in the federal income tax return relating to personal property taxes you pay during the year.

Here is a detailed explanation relating to the property tax can be calimed on which property and the situations in which deductions can be claimed etc..

Deductible property (real estate) taxes include taxes paid at closing when buying or selling a home, as well as taxes paid to your county or town’s tax assessor (either directly or through a mortgage escrow account) on the assessed value of your property.

Deduct it for your:

• Main home
• Vacation homes
• Land
• Foreign property

You can't deduct it for:

• Property you don’t own
• Rental property or business property (claim it as an expense, not a deduction)
• Local improvements, like streets or sidewalks
• Trash collection, library taxes, or anything else not directly related to property value

Generally you claim the deduction in the year that the payment was made, whether you made the payment directly to the taxing authority, or your lender made the payment to the taxing authority on your behalf.

• If you pay your property taxes as part of your monthly mortgage payment,
  You only get credit for making a real estate tax payment once your lender takes the money from your escrow account and makes a payment to the taxing authority on your behalf

So here in this case you have paid 6000 on 07-01-2017 can be cliamed as deduction on actual basis