Can one claim unpaid property taxes on their California tax return?
Nope. You can only claim the property tax deduction in the year that the property tax was actually paid. For example, you could (1) make both payments early and stuff them in 2007; (2) make the payments on the regular schedule (one in 07 and one in 08): or (3) make no payments in 07, paying it all (and a late fee) in 08. In the first scenario the entire tax would be deductible on 07 return. In the second scenario on the amount paid in 07 would be deductible on the 07 return. In the third scenario none of the tax would be deductible on the 07 return.
