Question

I closed on a home this year and the property taxes at closing were paid for by the money the seller brought to closing. Can I, as the buyer, deduct that amount?

Forum|Forum|7 years ago
June 1, 2019
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Howard1948

Employee

Let's see if I understand this. The seller paid you for his share of the property taxes and now you want to deduct that amount from your taxes? Isn't that like getting it twice? No, you can't deduct it and, when you pay the entire property tax that that deposit relates to, you must reduce your deduction by the amount of that payment.

So, say the seller gave you $400. And when the property tax bill became due, you paid $1,800. You only get a $1,400 deduction on your return for property taxes for that payment.