Converting Primary To Rental - Prepayment Of Propery Tax?

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reallyconfused
Posts: 55
Joined: Thu Dec 11, 2008 2:13 am

Converting Primary To Rental - Prepayment Of Propery Tax?

Post by reallyconfused » Thu Oct 26, 2017 1:04 pm

As the title suggests we are converting our primary residence into a rental property over the next few weeks. I normally prepay half of next years property taxes in the previous year. So for example, I normally would pay for July 2017-June 2018 in this calendar year.

My question is do I stop this practice and pay just this years real estate taxes this year and not prepay any of 2018? I'm going to have a negative cash flow position on this rental for at least 5-7 years I assume.

Thanks much for any insight,
RC

reallyconfused
Posts: 55
Joined: Thu Dec 11, 2008 2:13 am

Re: Converting Primary To Rental - Prepayment Of Propery Tax?

Post by reallyconfused » Sun Dec 03, 2017 12:47 am

Shameless bump to see if anyone has any guidance.

DrGoogle2017
Posts: 1322
Joined: Mon Aug 14, 2017 12:31 pm

Re: Converting Primary To Rental - Prepayment Of Propery Tax?

Post by DrGoogle2017 » Sun Dec 03, 2017 12:50 am

One or two payments? I usually have to pay one in Dec and one in April.

reallyconfused
Posts: 55
Joined: Thu Dec 11, 2008 2:13 am

Re: Converting Primary To Rental - Prepayment Of Propery Tax?

Post by reallyconfused » Sun Dec 03, 2017 1:16 am

Same as you. 2 payments. First is due in December and second is due in April. The annual property taxes are around 12k. Am I correct that if I pay the second payment that is due in April this year I will not be able to deduct from this years taxes because my primary home was converted to a rental before the end of the year?

DrGoogle2017
Posts: 1322
Joined: Mon Aug 14, 2017 12:31 pm

Re: Converting Primary To Rental - Prepayment Of Propery Tax?

Post by DrGoogle2017 » Sun Dec 03, 2017 1:26 am

reallyconfused wrote:
Sun Dec 03, 2017 1:16 am
Same as you. 2 payments. First is due in December and second is due in April. The annual property taxes are around 12k. Am I correct that if I pay the second payment that is due in April this year I will not be able to deduct from this years taxes because my primary home was converted to a rental before the end of the year?
I see, but you can deduct from your rental. If you pay before you convert to rental, you should be able to deduct in this year tax. I’m paying both payments now in December, just want to bunch my deductions before the new tax law becomes effect.

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