I understand that points are deductible but what about county tax prorations? I have my buyer's final settlement statement from escrow and it shows "County tax" 1/1/10 through 3/1/10 for a total cost of $383.72. Can I claim this in addition to my home buyer's tax credit? Please advise!
Thanks!
Dan
Only if
i) You owned the property from 1/1/10 through 3/1/10 and
ii) That money was actually paid to the county, and not merely paid into an escrow account but not disbursed from that account to the county during the tax year.
I looks to me like you may have bought the house some time this year and that the tax for the period from January to March is actually the
*seller* paying *you* for the tax that you're going to pay for him, sooner or later, to the county. Which makes it a *negative* tax to you, and it's gonna *reduce* your tax deduction. Surprise!?!,
"Paid to the county" includes reimbursing the seller for amounts he/she/they paid to the county as property tax.
Property taxes belong on Schedule A, line 6.
Was the amount on the settlement sheet an amount you paid or an amount that was paid to you? Was it "fer ya" or "agin ya"?
You may have *received* this amount rather than paying it. What line is it on on your HUD-1?
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