Are the prepaid property taxes that are included in the closing of a new home deductible?

[MindyB]

Yes, you may deduct the property taxes you paid at closing.  Since you are a cash basis taxpayer, the taxes may be deducted when paid.

Here is how to navigate to the entry for these taxes paid not included on Form 1098 (mortgage interest form):

• Navigate to Federal > Deductions & Credits
• Choose Add/Edit Property (Real Estate) Taxes
• Enter or edit the property taxes paid