Income tax question - any CPA's out there?

[leightx]

We are FINALLY filing our income taxes for last year (yes, we did file an extension!). We're stuck on one point - we didn't pay our property taxes until January of this year. Usually we pay in Dec., but since we actually paid our 2003 property taxes in January 2004, this means that we won't be able to claim them on this year's return, correct? By this year, I mean the one we are filing now - for 2003. Now, assuming that we do pay our 2004 property taxes in December of this year - will we be able to claim both year's on our 2004 taxes? I'm guessing yes, but just want to make sure!!

[Cinnamon Crazy]

Since you are a cash-basis taxpayer, once you pay the cash, then you can itemize the deduction. Therefore, everything you said is correct: the taxes you paid in January 2004 as well as the taxes you plan to pay in December 2004 are deductible on your 2004 tax return (to be filed next year).

-Anna

[MaryH]

Anna, OT here but PM me about the next Central Cal Supper Club if you're interested. (We 're glad to see you made it through tax season. :) )

[leightx]

Thank you!! I had a feeling that was the case.

Did I mention how much I HATE filing taxes!?!? We're even getting money back!! I know - stupid that we've taken this long to get our act together - it's the first year filing for our small business, and we just kept putting it off.