- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
No, because the money is still yours even if it is an in escrow account, until it is actually used to pay a tax bill.
However, you likely have some property taxes on your closing statement. You are allowed to deduct property taxes that are paid to the town or county for the period of time that you owned the house, even if you did not directly pay them.
For example, suppose the property taxes in your town are paid on January 15 to cover the calendar year January 1 through December 31. If you closed on your house on November 30, that means the previous owner paid a full year of property taxes the previous January. You probably gave that owner a credit for 31 or 32 days worth of property taxes at closing, representing the tax for the period of time when you owned the house from November 30 to December 31. You can deduct that property tax as if you had paid it to the government directly.