topic Real Estate Taxes Paid Late due to Late Bill from County in Deductions & credits

Real Estate Taxes Paid Late due to Late Bill from County

heldmacm — Thu, 06 Jun 2019 08:58:34 GMT

The second half of my real estate / property taxes were due 12/1/2016, but in talking to our mortgage company, they didn't receive the bill from the county until late December. As a result, the second of two payments was not made until 1/3/2017, though this should have been made in 2016 if not for the late bill. As a result, on our 2016 tax return, we have half the real estate taxes to deduct, which is causing a large fluctuation in what we owe. Given that the bill was supposed to be sent in time for the payment to be made in 2016, do we have any options to avoid owing a large amount this year (and presumably getting a refund next year since there should be three property tax payments made in 2017) ?

Unfortunately, you may report only the property taxes tha...

PatriciaV — Thu, 06 Jun 2019 08:58:36 GMT

Unfortunately, you may report only the property taxes that were paid within the calendar year of your tax return, even if you had escrow funds available.

Thank you, Patricia. So even though I had no control ove...

heldmacm — Thu, 06 Jun 2019 08:58:37 GMT

Thank you, Patricia. So even though I had no control over this situation occurring (given that it was due to the county sending the bill late), I have absolutely no recourse on my 2016 taxes beyond taking a big hit in what we'll owe this year and having it made up (to some extent) next year?

According to IRS rules, you are limited to reporting what...

PatriciaV — Thu, 06 Jun 2019 08:58:39 GMT

According to IRS rules, you are limited to reporting what was paid. The Form 1098 that you received from the mortgage company was also sent to the IRS. If the info from the form is compared to your return, the numbers must match.

Thanks again. Is there any way to anticipate/brace for t...

heldmacm — Thu, 06 Jun 2019 08:58:40 GMT

Thanks again. Is there any way to anticipate/brace for this situation in future years, or am I completely at the mercy of the bill being sent and paid on time? I can deal with it this year, but if at all possible, I'd rather not go through this again in future years.

You might follow up with the tax assessor for suggestions...

PatriciaV — Thu, 06 Jun 2019 08:58:42 GMT

You might follow up with the tax assessor for suggestions. Your lender can pay only the bills they receive.