Paying into escrow doesn't count as property tax until
exscrow makes the payments to the county. Escrows may
"buffer" (some people call it stealing) several months of
payments to have enough when the payment is due. I predict
from your information that they will pay a 12 months
property tax to the county by May 2005 and that will be youe
income tax deduction for 2005.

Now back to 2004. Its likely that the previous owner paid
the full 12 months by May 2004, but will be credited for the
fractional days you owned the house in 2004. This will
appear on the mortgage document as a property tax. Say your
closing was December 3rd, So you would probably have
reimbursed the previous own 29 / 365ths of the annual
property tax. That is the amount you can put schedule 1040A
for 2004. You dont need a 1098, but should keep the loan
closing document in the rare case verficiation is requested.

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Schedule A form 1040. I doubt that you have enough to
itemize this year, but you probably will have in 2005.

Missy Doyle

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My past income tax have been very simple, just income from
work.

In November 2004 I bought a house and I paid mortgage
interest for 1 month (in 2004), and also 6 months of
property tax when I closed the escrow. Is this the only
extra items I need to pay attention to when filing for 2004?

I am not sure if I have all my forms. What forms would show
that I paid the property tax? What forms And the mortgage
interest from my mortgage and home equity loan for that one
month? Thanks in advance.

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