<HarAhd[at]aol.com> wrote

- quote -

Nope. You get to deduct the actual amount paid ~~from~~
your excrow account. Add or subtract from that amount the
adjustment made at closing for property tax.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<HarAhd[at]aol.com> wrote:

- quote -

Your use of the word escrow confuses things. Usually that
involves some sort of lender impound to ensure future
payment of real estate taxes. In that case the payments are
deductible only when actually paid to the taxing authority
by the escrow agent.

Then you say this is reimbursement to the seller. If it's
in that part of your closing statement, where you reimburse
the seller for pre-paid taxes, yes it's deductible on your
return for the year of closing. See Publication 530.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

We bought a rental property in Oct. of 2005. Property taxes
were paid in escrow from Oct. through Jan. 1, 2006. Can we
deduct that amount on our taxes? My understanding is "Yes"
as that amount was actually credited back to the seller as
credit - still want to make sure.

Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >