I bought my house at 09/2005, and use Escrow service provided by wellsfargo to pay property tax. due to the ignorance of wellsfargo, they didn't pay the property tax of
2005 for me until Jan 2006. As a result, in the form they sent, for year of 2006, the total amount of property tax paid is actually 2005 tax amount (7000) + 2006 tax amount (7000) = 14000... should I just use this number $14000 for my tax return? (I didn't do any itemization last year) ThanksWeiwei
Take the deduction at the year it was paid. In this case yes, take all of $14,000 for your 2006 tax return.
I wold think this would be to your advantage because if you didn't itemize in 2005 you wouldn't get the full advantage of the deduction in 2005. However, did they account for your taxes to NOT include taxes prior to date of your purchase?. Since they report both years the same it looks like they included prior owner's tax. ed
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