Artículo Tenant-shareholders in a cooperative housing corporation.. Tenant-shareholders in a cooperative housing corporation.

id="en_US_2025_publink1000173167"> Tenant-shareholders in a cooperative housing corporation. Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. The corporation should provide you with a statement showing your share of the taxes. For more information, see Special Rules for Cooperatives in Pub. 530. Division of real estate taxes between buyers and sellers. If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. The seller is treated as paying the taxes up to, but not including, the date of sale. The buyer is treated as paying the taxes beginning with the date of sale. This applies regardless of the lien dates under local law. Generally, this information is included on the settlement statement provided at the closing. If you (the seller) can’t deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. This lets you deduct the part of the tax to the date of sale even though you didn’t actually pay it. However, you must also include the amount of that tax in the selling price of the property. The buyer must include the same amount in the cost of the property. You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. Worksheet 11-1. Figuring Your State and Local Real Estate Tax Deduction 1. Enter the total state and local real estate taxes for the real property tax year _____ 2. Enter the number of days in the real property tax year that you owned the property _____ 3. Divide line 2 by 365 (for leap years, divide line 2 by 366) . 4. Multiply line 1 by line 3. This is your deduction. Enter it on Schedule A (Form 1040), line 5b Note: Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. Your total deduction is the sum of the line 4 amounts for all of the properties. Real estate taxes for prior years. Don’t divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. Even if the buyer agrees to pay the delinquent taxes, the buyer can’t deduct them. The buyer must add them to the cost of the property. The seller can deduct these taxes paid by the buyer. However, the seller must include them in the selling price. Examples. The following examples illustrate how real estate taxes are divided between buyer and seller. Example 1. Porter and Riley White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. The tax on their old home, sold on May 7, was $620. The tax on their new home, bought on May 3, was $732. Porter and Riley are considered to have paid a proportionate share of the real estate taxes on the old home even though they didn’t actually pay them to the taxing authority. On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. Porter and Riley owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). They figure their deduction for taxes on their old home as follows. Worksheet 11-1. Figuring Your State and Local Real Estate Tax Deduction—Taxes on Old Home 1. Enter the total state and local real estate taxes for the real property tax year $620 2. Enter the number of days in the real property tax year that you owned the property