Property tax question?
By admin on Jul 6, 2009 in United States
Ron G asked:
Sold my primary home in June of 2006. The attorney prorated the property taxes on the settlement statement leaving the buyer responsible for the full payment of the 2006 property taxes. The amount due to me as seller was reduced and was credited to the buyer. Do I get to claim this reduction as property taxes paid? Previous property taxes were paid through my escrow account. So the banking institution did not report that I paid property taxes on this home in 2006. The 1099-S received by the attorney did not report that I paid property taxes either. Thanks.
Sold my primary home in June of 2006. The attorney prorated the property taxes on the settlement statement leaving the buyer responsible for the full payment of the 2006 property taxes. The amount due to me as seller was reduced and was credited to the buyer. Do I get to claim this reduction as property taxes paid? Previous property taxes were paid through my escrow account. So the banking institution did not report that I paid property taxes on this home in 2006. The 1099-S received by the attorney did not report that I paid property taxes either. Thanks.
On Jul 8, 2009, Rob said:
Yes you can claim the portion that was credited as paid by you in 2006 to the date of sale
For federal income tax purposes, the seller is treated as paying the property taxes up to, but not including, the date of sale. You (the seller) are treated as paying the taxes ending with the date of sale. This applies regardless of the lien dates under local law. Generally, this information is included on the settlement statement you get at closing.
Publication 530
On Jul 10, 2009, kattsmeow22315 said:
Yes, as a seller you can deduct any interest and taxes you paid that are on your settlement sheet.