We moved to India this year in June and own a home which is currently rented out.
My question was regarding the property taxes:
Would it make sense to pay both installments of property tax this year itself (one installment is due in Dec 2012 and other in Mar 2013) and take the deduction against this year's income? Next year I am not anticipating any income in US other than the rental income which does not even offsets the mortgage interest and other rental expenses.
Property Tax for the year of R2I
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kkassociate
- Posts: 173
- Joined: Mon Oct 05, 2009 4:45 pm
Property Tax for the year of R2I
Dear Sir/Madam,
It will completely depend on your tax situation. Normally if the house was been occupied partly during the year and partly rented then the real estate taxes are split proportionately between Schedule A and Schedule E. Now if in case during the year, you estimate that the Net Income after deducting your Mortgage interest for the part of the year which was rented is going to be positive number it is better to pay the real estate taxes before December 2012 and set of the loss from the rental income against your total income. Again this depends if your total income is more than the stipulated limit required for computation of admissible losses per Form 8582 then it would be favourable otherwise not.
We provide both US and India Tax Filing and Planning services. You can drop us your questions on [email][email protected][/email] or visit us on at www.kkassociate.com
Regards,
KKA
It will completely depend on your tax situation. Normally if the house was been occupied partly during the year and partly rented then the real estate taxes are split proportionately between Schedule A and Schedule E. Now if in case during the year, you estimate that the Net Income after deducting your Mortgage interest for the part of the year which was rented is going to be positive number it is better to pay the real estate taxes before December 2012 and set of the loss from the rental income against your total income. Again this depends if your total income is more than the stipulated limit required for computation of admissible losses per Form 8582 then it would be favourable otherwise not.
We provide both US and India Tax Filing and Planning services. You can drop us your questions on [email][email protected][/email] or visit us on at www.kkassociate.com
Regards,
KKA