"Fish" <fish-1[at]comcast.net> wrote:

- quote -

Not exactly.

Sounds more like you paid monies into a mortgage escrow
account. If that is the case, then you get to deduct the
taxes when they are actually disbursed from the escrow
account.

Now, about the bank having that much of your money in their
account is another matter altogether.

For the sale of the old house, if at the closing you had to
pay for taxes in between the quarterly payment dates, that
may be an adjustment to what you can deduct.

--
<<< Benjamin Yazersky CPA [NJ & NY] > >
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"Fish" <fish-1[at]comcast.net> writes:

- quote -

I'm assuming that all these payments were into an impound
maintained by the lender to assure payment to the taxing
authority. You can deduct the amount paid out by the
lender, which should be included on your 1098.

- quote -

At closing either you paid the buyer for accrued but unpaid
property taxes or the buyer repaid you for prepaid but
unaccrued taxes. Check your closing statement. If you paid
the buyer it's a 2003 deduction. If the buyer paid you it
reduces your 2003 deduction.

See IRS Publication 530.

Phil Marti
Topeka, KS

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When we purchased our new house in June, we pre-paid a years
worth of taxes. Since June, We have been paying monthly for
next year. Can I deduct both the prepaid year AND the
monthly payments all this year? If so, do I have to net out
the taxes we got back from the sale of our old house?
Thanks!!!!

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