Closing costs that I want to write off??

Question

Hello-
I bougth a house in 2006 and on the closing costs worksheet I got back from the title company it shows the property taxes for 2005 that were not paid by the seller.
They say UNPAID by SELLER..
I paid my taxes already so can I write off theses taxes also.
My thought is if it's unpiad by the selller then it was paid for by me so can I write them off this tax season?
Thanks for helping a newbe out!

Answer 1

Taxes are apportioned between buyer and seller. When you look at the HUD-1, ignore the seller's side, just concentrate on yours. If the property tax line causes the additions to increase (thus increasing the amount you had to pay at closing) then you have a deduction, in addition to any taxes you paid after that date as well (please not that money paid into escrow does not count when it goes in, only when the mortgage company pays it out).

In summary, work out if there is a figure you can claim from your HUD-1 and add that to any figure on your 1098 from the mortgage company.

Answer 2

Real estate taxes listed on the HUD-1 form as "unpaid by seller" appear as a credit to you. The seller get's the deduction for those, not the buyer.

Even though you might actually pay the tax to the taxing authority, you were compensated for that through the credit on the HUD-1 statement and cannot deduct it yourself. They were in fact paid on behalf of the seller.

Answer 3

i think of you may once you artwork out your capital beneficial components on the sale. The purcahse cost minus the advertising cost plus expenses (last expenses are in all probability includeable, or considerable advancements, yet no longer updating ones, like changing homestead windows as against including a dormer or swimming pool)