bought a home and sold a home in 2025 with overlap --how do i do property taxes?--county does taxes done in arrears

[ssully10]

2-27-2026

Hello:

My county in Ohio does property taxes in arrears. I purchased a home June of 2025 and sold my former home on August of 2025.

I'm doing my taxes now. Do I use the property tax information on the buyer's and seller's agreements when completing my 2025 returns? 

Thank you. 

[Mike9241]

for the home sold, it would be the taxes actually paid in 2025 through escrow (not including escrow deposits)  or directly to the real estate tax authority + the prorations on the closing statement for the unpaid taxes for the period you owned it. on the home bought, you got credit for the taxes owed for the period you did not own it. Those credits first offset any payments made (not including escrow deposits) so until the year all those credits are used, there is no deduction 

[ssully10]

First, thank you for your response. 

Second, let me ask if I have this correctly now:  

So on the 2025 return I'm completing now,  I list the prorated county taxes for the 1-2025 to 8-2025 period I lived in the home that was paid to the buyer of my former home. 

Then on the 2026 return I list the full property taxes I actually paid in 2026 i.e., the arrears for 2025. 

Because taxes are done in arrears in this Ohio county, what about the taxes I had already paid in 2025 to cover the 2024 arrears? are those reported on the forms I'm completing now? 

Thank you. 

[Mike9241]

Because taxes are done in arrears in this Ohio county, what about the taxes I had already paid in 2025 to cover the 2024 arrears? are those reported on the forms I'm completing now? 

yes you include in the deduction the 2024 real estate taxes you paid in 2025. 

in 2026, you'll deduct what you pay less credits you received for the taxes owed on the home you bought. 

The only caveat is you don't get to deduct taxes you deposit into an escrow account, if you have one for the new property. Only amounts taken out to pay taxes are deductible. That's because the IRS treats the escrowee as your agent