Where To Deduct RE Property Taxes?

[Sandy26]

First I would like to thank everyone on this tax discussion forum for all of your help!

I have a client who owns a SFR in Oregon. For the first 3/4 of the year the property was a 2nd Home and for the last 1/4 of the year it became a Rental. The client just discovered (when I asked how much RE Property Tax was paid during 2007) that they never paid any RE Property Tax during 2007. So they will be paying their 2007 and 2008 RE Property Taxes during 2008. Since RE Property Taxes can be taken as a deduction the year they are paid, would the entire amount that will be paid in 2008 be a deduction for the Rental Property even though it was a Rental for only 1/4 of 2007? If the answer is no, what will be the proper way to deduct the RE Property Taxes paid in 2008?

Thanks in advance for any help on this question,
Sandy

[taxmandan]

If I were doing the return

I would put 3/4 of the '07 taxes on their 2008 Sch A as property tax deduction, the other 1/4 of '07 and all of '08 taxes that are paid on the Sch E.

[gkaiseril]

Cash Basis for Income and Expense

Individual taxpayers are usually cash basis for income and expense. Recognize the expense in the year paid in cash or by credit. Take the personal portion on Schedule A of the 2007 taxes paid in 2008 and the rental portion on Schedule E of the 2007 taxes paid in 2008 and all of the 2008 taxes paid in 2008..