Question

in adelaide county, the real property tax year is the calendar year. the real property tax becomes a personal liability of the owner of real property on january 1 in the current real property tax year, 2022. the tax is payable on june 1, 2022. on april 30, 2022, jules sells a house to villanueva for $230,000. on june 1, 2022, villanueva pays the entire real estate tax of $7,300 for the year ending december 31, 2022. how much of the property taxes may jules deduct?

Answer 1

When Jules sells the house to Villanueva, Jules remains responsible for the property tax for the entire year, but since Villanueva pays the tax, Jules cannot deduct any portion of the property taxes.

Step-by-step explanation:

When Jules sells the house to Villanueva on April 30, 2022, Jules is still the owner of the property. Therefore, Jules is responsible for the real property tax for the entire year, which is $7,300. However, on June 1, 2022, Villanueva pays the full amount of the real estate tax. Since Villanueva paid the tax, Jules would not be eligible to deduct any portion of the property taxes on their tax return.