Property Tax Strategy

[Corduroy Frog]

Post deleted to avoid confusion.

[BHoffman]

As Veronica is a cash basis taxpayer, I would say A.

[Jesse]

I'm unclear as to what you are actually asking, or possibly just missing the point?

As cash basis taxpayers they would be able to take the entire $1,950 property tax paid, but if they only have other itemized deductions of $10,000 + $1,950 = $11,950 it would be more advantageous to take only $1,000 of property tax paid and add it to the standard deduction of $11,400 for a total deduction of $12,400.

[Snaggletoof]

Clarification

Jesse, this is the Corduroy Frog at a different computer location. The question needs to be rephrased as the original post mentions nothing about the changes in property tax deductions which have been the result of the stimulous legislation.

I'll begin a new thread, rephrasing the question, and delete the Corduroy Frog original post this afternoon. If the new legislation (for 2009 only) does not allow cash basis deductions, all of us will be confronted with this issue next tax season.