I bought my house in May of 2006 in Ohio. Ohio bills property tax one year in arrears and I ended up paying for the second half of 2005 taxes. My settlement statement at closing read '2005 taxes paid in full', who is at fault here and how do I go about getting the money back that was taken out of my escrow account?
2007-12-23 04:52:24 · 5 answers · asked by spontaneousknight 1 in Business & Finance ➔ Taxes ➔ United States
You should have received a CREDIT for the taxes that accrued to the seller up through the date of sale. Go back and re-read your settlement sheet. Any bills rendered after the closing date will be sent to the owner of record on the deed and that person is liable for the payment of the taxes.
If an error was made in the calculations at settlement -- rare with the automated systems but it can happen -- you'll have to file a claim with the closing agent and see if it is possible to recover that from the seller. As is often the case the seller has long moved on and you may not be able to reach them. The closing agent would generally be liable for any errors that they made in the settlement calculations and it would generally be up to the closing agent to recover from the seller.
2007-12-23 05:23:40 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
components taxes are due at a definite time of 12 months (0.5 on December 10 and the rest on April 10 in San Diego county). So, if the valuables taxes are paid up for the present 12 months and you purchase a components in, say, August, the previous proprietor gets reimbursed by escrow for the taxes they paid from August in the time of the top of the 12 months. And, you're in charge for paying the quantity that the broker gets reimbursed. the quantity of taxes you owe (and the quantity the broker gets reimbursed) is a prorated quantity, based on the date that escrow closes. So, enable's say escrow closes on August 31 and the comprehensive tax invoice for the 12 months replaced into $3000. you're in charge for paying 4 months (September by December) of the valuables taxes paid and the broker gets this reimbursed. So, you may ought to placed up an added prorated tax fee of $1000 into escrow. And, the broker could get a verify for $1000 as reimbursement for taxes paid. If there is an blunders in the proration calculation, the shopper could be paying the incorrect quantity into escrow and the broker could be reimbursed the incorrect quantity. And, you would be certain notwithstanding if a tax proration blunders got here approximately by potential of merely calculating the share of time in the time of the 12 months that the shopper would be possessing the homestead. then you multiply the comprehensive tax invoice for the present 12 months by potential of that share and that's how lots the prorated tax fee must be. If the escrow company has a distinctive quantity than that, then there's a tax proration blunders.
2016-10-02 06:52:25 · answer #2 · answered by ? 4 · 0⤊ 0⤋
You probably got a credit in your purchase escrow for taxes that accrued but were not paid when the sale closed. Since you got the money, you will have to pass it on to the tax collector.
2007-12-23 08:06:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
County tax assessor. You'll have to go to the tax office and dispute that, with your closing statement.
You should be able to call and make an appointmentt.
2007-12-23 04:58:37 · answer #4 · answered by ed 7 · 0⤊ 0⤋
If you did get a credit (reducing the cost of your house), you would add the taxes to your basis, not to your itemized deductions.
2007-12-23 05:54:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋