How do deduct real estate taxes on 1040a?
I purchased a home in October, 2007. My monthly mortgage payment includes my county, state, and school taxes (they are placed in Escrow). Apparently my tax payments will be paid out of escrow in April, May and August of 2008. Does that mean that I can not claim real estate for my 2007 return? (At closing, I did have to reimburse the seller for real estate taxes he had already paid up to Dec. 31.)
Public Comments
- So far you haven't got any property taxes to itemize. The amount you paid at closing is part of your basis. (Actually, I think the seller reimbursed you if he paid through 12/31.) The amounts paid in 2008 are 2008 taxes.
- If you refunded real estate taxes to the seller in your closing statement, then you deduct the amount you refunded them.. do you know the amount? Look on your closing hub and it should display the amount allocated to property taxes. Anything paid in 2008, cannot be deducted in your itemized until next year. Best Wishes!
- you can't file a form 1040a if you want to deduct real estate taxes and mortgage interest - you have to file the 1040 long form and those items get listed on Schedule A
- Your lender will send you a 1098 for interest and taxes paid in 2007. If you did not actually pay property tax in 2007, you cannot claim it.
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