As a recent homebuyer in Illinois, should I claim "Real Estate Taxes Paid" as reflected in Box 10 of Form-1098 on my federal tax return?

household — Thu, 06 Jun 2019 05:45:57 GMT

I purchased the home in Illinois, January 2016. Taxes are paid "in arrears" from escrow on the mortgage. The sellers credited 2015 taxes (reflected in 2016 tax bills) at closing; but monthly mortgage payments contribute to escrow in part for taxes.

Does the IRS consider my real-estate taxes paid -- as the bank reports in Box 10 of Form-1098 -- as deductible on the 2016 returns? Or, does the fact that the sellers credited 2015 taxes (reflected in 2016 tax bills) mean the amount in Box 10 cannot be deducted?

Alternatively, do contributions to escrow mean I effectively pre-pay 2016 property taxes and thus the IRS would consider this amount tax deductible?

You can deduct taxes paid on your behalf to the taxing au...

Texas Roger — Thu, 06 Jun 2019 05:46:00 GMT

You can deduct taxes paid on your behalf to the taxing authorities in 2016 regardless of what year the taxes were for. You cannot deduct payments to escrow for taxes until taxes are actually paid using those funds. The amount in box 10 would be taxes paid out of escrow on your behalf to the tax authorities and can be deducted.

topic As a recent homebuyer in Illinois, should I claim "Real Estate Taxes Paid" as reflected in Box 10 of Form-1098 on my federal tax return? in Deductions & credits

As a recent homebuyer in Illinois, should I claim "Real Estate Taxes Paid" as reflected in Box 10 of Form-1098 on my federal tax return?

You can deduct taxes paid on your behalf to the taxing au...