Hey guys. had a buddy just move to Houston from Illinois. He had a question I was curious about as well.
Illinois property taxes are paid in arrears. He sold his house in March of this year and credited the buyers all of 2017 tax and 3 months of 2018 which is 14k and change.
He also bought a house in houston with 6k annual property tax.
So he will pay 6k property tax for houston and 14k for 2017 + 3 months of 2018 taxes in Illinois. Is the 2017 tax deductible for 2017 even though he credited it to buyer in 2018? He just doesn’t want everything to be added up all in 2018 since that will be about 20k in property tax and the cap is 10k per the new tax law.