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Mortgage interest deduction question
We bought and sold a house this year. Because our taxes are paid a year in arrears, when we sold our house, we had to pay to the buyer taxes from July 2020 thru the sale date. And conversely, when we purchased our new house the sellers did the same. Are the taxes we paid at closing for the prior year time period deductible this year? And would we deduct the credit we received at closing on the new house from the total interest paid? In addition, we escrow our mortgage payments. Are the payments made to the escrow account this year (for both homes) the amount we can deduct as mortgage interest or only the amount related to the actual payment to the county in the current year?
‎January 31, 2022
4:25 PM