Can I claim real estate taxes and interest if I bought my home in October?

Question

If I purchased a home and closed escrow in October, could I claim the taxes for October - December along with interest paid on my 2007 income taxes? What is the cutoff date in order to claim?

Answer 1

If you mean 2006 taxes then yes.

I purchased my home in December of 2005 and claimed 6 days worth of interest and one point as prepaid interested on my first years note. Any property taxes that were paid on your closing statement are also up for a deduction.

Answer 2

First off, you can only claim them if you are going to itemize, meaning your itemized deductions are higher than the standard.

Second I assume you mean on your 2006 return which is currently due. But no matter what year, you can claim only what you paid during that year. On your 2006 return you can claim your real estate taxes and interest that was paid during 2006, not if you paid it in 2007. However, you should receive a form from your mortage company telling you what interest you can take on your 2006 tax return.

Now here is what some people do, they will pay their property taxes late one year, so they are paid in January, then pay the next year during December, so they have paid 2 years real estate taxes in one year. Thereby increasing their itemized deductions every other year, this is great for people who are close to being able to itemize.

Answer 3

Mortage interest or real estate taxes paid on or before 12/31/06 can be deducted on schedule A of your 2006 return, the one you file in 2007.

Answer 4

Any interest paid in 2006 is deductible. Any taxes paid on the house in 2006 are deductible. Tax day is April 17 this year.

Answer 5

Yes you can. You should have received a statement from your lender that shows how much interest you paid last year. You can actually claim all th costs on your loan when you took it out as well. Give your CPA a copy of your final HUD. You should have received it from the escrow company.

Answer 6

No, youll have to wait til next year. Taxes due are for the 2006 year, and since you just bought your house in 2007, youll have to wait until next year.