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Property tax not on 1098

Forum|Forum|6 years ago
June 6, 2019
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we paid at closing

TurboTax Premier Online

Best answer by MargaretL

You can still deduct the property tax - just your share, though...If your property tax "covers" only the amount since the closing, you can deduct the full amount. If not, please see below for details on the allocation:

The buyer and the seller must divide real estate taxes according to the number of days that each owned the property during the year. Both are considered to have paid their share of taxes, even if one or the other paid the entire amount.

Buyer-paid taxes. Deductible by the buyer only for the period he owned the property. The buyer cannot deduct the real estate taxes of the seller. The buyer must add these taxes to the basis of the property. The seller treats this as additional sales proceeds.

Seller-paid taxes. If the seller pays real estate tax owed by the buyer (beginning on the date of sale), the buyer is considered to have paid the tax. The tax is deductible by the buyer. The buyer must reduce the basis in the property by the tax paid. The seller treats this as a reduced selling price.

Data entry in TurboTax:

Federal Taxes
Deductions & Credits
Your Home
Property Taxes

MargaretLAnswer

Employee

You can still deduct the property tax - just your share, though...If your property tax "covers" only the amount since the closing, you can deduct the full amount. If not, please see below for details on the allocation:

The buyer and the seller must divide real estate taxes according to the number of days that each owned the property during the year. Both are considered to have paid their share of taxes, even if one or the other paid the entire amount.

Buyer-paid taxes. Deductible by the buyer only for the period he owned the property. The buyer cannot deduct the real estate taxes of the seller. The buyer must add these taxes to the basis of the property. The seller treats this as additional sales proceeds.

Seller-paid taxes. If the seller pays real estate tax owed by the buyer (beginning on the date of sale), the buyer is considered to have paid the tax. The tax is deductible by the buyer. The buyer must reduce the basis in the property by the tax paid. The seller treats this as a reduced selling price.

Data entry in TurboTax:

Federal Taxes
Deductions & Credits
Your Home
Property Taxes

C

cordreab

I owned a home in 2019 and sold in October of that year. There is no property taxes showing up on my 1098. Is this because I sold the home? During the sale did I pay any portion of the taxes? Do I leave blank for property taxes paid for 2019 taxes?

J

JFRAHER

If the mortgage company allows online access you should be able to see any disbursements from you escrow account to pay property taxes. To see if you paid any property taxes at the closing table you will need the settlement statement formerly the HUD-1