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