Is payment of a mortgage escrow shortage tax deductible?

Question

My mortgage escrow account covers insurance and property taxes. Are these normally tax deductible expenses?

Answer 1

Sorry my friend, but payments toward escrow accounts are NOT tax deductible. What IS tax deductible is your property tax. The IRS and your state don't care how much you paid for homeowner's insurance -- they're only interested in how much you paid in property taxes. However, if you bought your home this year or refinanced your home, you may be able to write off the closing costs as well. And of course you can write off the total amount of interest you paid against your mortgage. You should get an IRS form from your mortgage company that tells exactly how much you paid in interest, and you should also get another IRS form from your state or city/township that tells exactly how much you paid in property tax.

P.S.: Did you know that your vehicle registration is usually tax deductible if you itemize your deductions? May not be much, but every little bit helps.

Answer 2

No it's not. You can deduct the taxes paid on a home as a whole, but not the insurance. Wish we could. If you had an arrearage in your escrow account, you will probably see this again to keep up with your increases throughout the mortgage. Sorry.

Answer 3

Insurance isn't deductible, property taxes are. But the amount you deduct on property taxes is what was actually paid OUT of the escrow fund for taxes, not what you paid in. So you can't deduct what you paid in to cover the escrow shortage, but will be able to deduct the tax portion when it's paid out.

Answer 4

No, own loan money could be revoked. anybody that has ever long gone by way of the approval technique of having a private loan has worked long sufficient and perplexing sufficient to justify the cost of a built habitat a number of circumstances over, and the insertion of a few third occasion supervisory dispensary of organic human habit, that neither produces nor ingredients by way of provider something of quantifiable fabric substance yet imposes a life-time danger of punitive deprivation to extract maximum human beings of all cost the sufferer ever produces is an exercising in absurdity that defies mind's eye. Tax 'deductible' 'own loan' money? you're talking esoteric jargon that corresponds to no organic actuality, and that's the way we've been given into this mess. Intelligence is the way out, continuation of esoteric jargon and perception interior the precis techniques it represents is the way deeper in.

Answer 5

Sorry, that's part of your mortgage agreement. You can only deduct the interest paid on your mortgage.

Answer 6

It's really good

Answer 7

It depends..