AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/21/2008 Subject: Real Estate Tax
Question Greetings,
I paid estimated property taxes in 2005 and 2006. Now the tax is finalized and I am preparing to pay the city and county. Assuming I make the payment today - do I deduct these tax payments for my 2008 return since the payment is being made in 2008?? Or do I need to amend the filings for 2005 and 2006?? Thanks in advance!
Answer If you actually paid and deducted estimated taxes in 2005 and 2006, you would only report the actual liability less estimated taxes paid previously on your 2008 return - in other words, what you are paying in 2008.
If you estimated and deducted taxes on 2005 and 2006 - but did not actually pay them, you need to amend 2005 and 2006 and eliminate those deductions from those returns.
