Can I Deduct Back Real Estate Taxes From Previous Homeowner Paid During Closing?
When I closed on my house in January of 2008, the previous owner apparently owed back taxes from 2006. The line on my HUD-1 says "2006 RE Taxes - Cert #__________ to County Tax Collector" paid by seller. Since real estate taxes are deductible is that something that I as the buyer can include in my real estate tax deduction?
Public Comments
- No, it came out of the sellers proceeds. You didn't pay it and even if you had it would be added to the basis of the house and not currently deductible. The seller would be able to deduct it since he paid it by having it come out of his sale proceeds (tax only not penalties and interest).
- You can only deduct real estate taxes that related to the period you owned the property. Any real estate taxes that you pay that relate to the time before you became the owner need to be added to your purchase price to increase your tax basis in the property. Richard K Master Tax Advisor HR Block This advice was prepared based upon the law in effect at the time it was written as it applies to facts provided by you. See my profile for more information.
