I purchased a home in 2025 and had to pay a prorated share of property taxes as part of the closing costs. I also pre-paid the next installment of property taxes at closing which would be 100% payable by me (these would normally be due in February 2026). I know that normally I would be able to deduct this amount when I file my 2025 taxes (assuming that I itemize). I received seller concessions that covered all of my closing costs, including my share of the property taxes (the seller concessions were actually more than my original closing costs which is why I made the additional property tax payment). Can I still claim these taxes when I file or not? Do the concessions essentially get treated as a reduction in purchase price (and the property taxes are claimed as normal), or since the seller technically paid these taxes and not me do I not get the deduction? The way I see it, the county just knows that my share of the taxes were paid by the escrow company as a normal part of the sale (they don't necessarily know about any seller concessions) so I should still get the deduction, but I wanted to sanity check that my understanding is correct with a bunch of strangers on the internet 🙂
