Question

Mike sells his home to Jane on April 2, 2019. Jane pays the property taxes covering the full calendar year in October, which amount to $2,500. How much may Mike and Jane each deduct for property taxes in 2019?

Answer 1

Answer:

Mike is $623

Jane is $1,877

Explanation:

Property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation.

Mike's deduction for property tax:

$2,500 × 91/365 = $623

Jane's deduction for property tax:

$2,500 × 274/365 = $1,877