PaulaM
Employee Tax Expert

Deductions & credits

Impound accounts (escrow accounts), are simply accounts that are used by the mortgage company to collect insurance and tax payments that will be eventually paid out to your insurance company and taxing authority.

The allowable deduction would be for the amount that was remitted to the county tax authority, on your behalf ($1680.06.) If property taxes were actually paid with your closing statement to the taxing authority (not paid in escrow), then yes, you could adjust the amount to reflect that occurrence.

Most other fees associated with your settlement statement, are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

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