Do I have to pay for the last year or only from when I close.
2007-12-18 11:44:57 · 4 answers · asked by joleen j 3 in Business & Finance ➔ Taxes ➔ United States
Only from when you close.
There will be a line on the HUD at closing showing the property taxes that were prepaid by the previous owner (up to the day before the sale) You'll be liable for any prepaid taxes that the previous owner already covered, but only from the day you take over ownership of the house forward.
I hope that helps.
2007-12-18 11:49:15 · answer #1 · answered by Michael K 5 · 2⤊ 0⤋
If you are already itemizing your deductions on Schedule A, it won't matter if you close in December or January. Any taxes already paid by the seller for time after the closing will be reimbursed by you at closing. You will be able to deduct this amount, since it is payment of taxes on your home from the time you owned it.
If you are not using Schedule A on your return in 2007, it is probably better to wait to close in January in the hopes that you will have enough deductions to itemize next year.
2007-12-18 11:58:30 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Ordinarily in a purchase escrow the taxes are prorated between the buyer and the seller. You would have to write a check to pay any bill that comes due after closing but the seller will have paid you his share as a credit against the price you pay for the house.
2007-12-18 14:13:16 · answer #3 · answered by Anonymous · 1⤊ 0⤋
in most areas, the property tax year runs from July thru June.
the closing process in the Us adjusts the amount of property taxes due from each party and the amount of any payment already made.
There are only a few states that levy retroactive taxes based on the new price [the price you're going to pay] through the end of the tax year. Ask your agent if your state is one of these.
2007-12-18 11:52:52 · answer #4 · answered by Spock (rhp) 7 · 0⤊ 1⤋