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Deductions & credits
Money placed in or deposited to an escrow account is your money and remians your money until such time it is used by the administrator of that escrow account to pay a qualified deductible expense. You can not claim a deduction for any monies placed in an escrow account. However, you "may" be able to deduct monies taken out of an escrow account if that money is used to pay a qualified deductible expense.
For example, most escrow accounts are set up to pay property taxes and homeowner's insurance. Monies taken out of that account for property taxes is a deductible expense. Monies taken out of that account to pay homeowner's insurance *ON YOUR PRIMARY RESIDENCE* is *NOT* a deductible expense.
‎June 25, 2020
2:21 PM