Taxes and interest are two types of expenses that are hard to avoid. In the course of your business activities, you may pay various taxes and interest charges. Most taxes and interest payments are deductible; some are not.
For further information about deducting taxes and interest, see IRS Publication 535, Business Expenses.
In order to deduct taxes, they must be imposed on you. The tax must be owed by the party who pays it. If your corporation owns an office building, it is the party that owes the real property taxes. If, as part of your lease, you are obligated to pay your landlord's taxes, you can deduct your payment as an additional part of your rent; you do not claim a deduction for taxes, since you are not the owner of the property.
Taxes must be paid during the year if you are on a cash basis. If you pay taxes at year end by means of a check or even a credit card charge, the tax is deductible in the year the check is sent or delivered or the credit charge is made. This is so ...