I bought a house in Houston, Texas last summer. I've just received my first bill of property taxes in the mail. I have until February of next year to pay without any penalty. My question is should I pay property taxes now (this year) and claim it in my 2007 tax return OR should I wait until next February?
Thanks,
Kenny
2007-11-08 16:37:50 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The real issue here is whether or not you will make more money (and thus be in a higher tax bracket) next year. If not, pay the taxes early and take the deduction this year (the deduction is based on the year in which you pay the tax, not when the tax is due).
If you expect to be in a higher tax bracket next year, then wait and pay the taxes in '08. You will 'net' a larger savings.
2007-11-08 17:01:17 · answer #1 · answered by Doctor J 7 · 2⤊ 0⤋
Real property tax follows the property not the owner. Unless you are going to be faced with a deficiency judgment after the foreclosure there will be no point in you paying. If you can rescue the house, you will need to pay the taxes. If there is any equity in the property I suggest you contact a bankruptcy lawyer about filing a Chapter 13 plan through which you could pay the back payments over five years and not lose the house.
2016-05-28 21:51:47 · answer #2 · answered by lessie 3 · 0⤊ 0⤋
If you have a mortgage payment...it is usually included in your payment. The Tax Appraisal District just sends out the notice to inform you on how much it is...and you have to pay it if your mortgage company doesn't. I usually pay mine as soon as I can...earlier payments get a reduced payment amount. Feb. is the latest you can pay the regular amount without being charged a late fee and interest penalty.
2007-11-08 19:02:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I think you can still claim it even if you don't actually pay it until February because they are still 2007's taxes. But, if you have the money, I'd go ahead and pay it anyway so that it'd be over and done with and you won't have to worry about it.
2007-11-08 16:47:08 · answer #4 · answered by First Lady 7 · 0⤊ 2⤋
If you have a mortgage then you most likely have an escrow account that covers taxes and insurance for the home.
so if you have an escrow account, give the bill to your mortgage provider and they will handle it.
2007-11-08 16:46:19 · answer #5 · answered by Anonymous · 0⤊ 1⤋
When the bill is paid then you can claim it.
2007-11-08 21:48:12 · answer #6 · answered by Gary 5 · 0⤊ 0⤋