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Can the Property (real estate) taxes be the amount on the Escrow Disbursement Breakdown in my annual escrow account disclosure statement or where do I find the amount?

This is a different questions. In my closing statement, it says an origination fee of $3,771.88 was paid by HomeQuest Mortgage. Can I claim that?
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Anonymous
Not applicable

Can the Property (real estate) taxes be the amount on the Escrow Disbursement Breakdown in my annual escrow account disclosure statement or where do I find the amount?

if you didn't pay it you can't claim it. 

 

if you have a real estate tax escrow account your monthly deposits and any money deposited into it at the closing of the purchase are not deductible.  the IRS position is that the escrow agent is your rep and thus the taxes are not paid.  disbursements from the escrow a/c to the tax authorities are deductible but if you just closed on the property you may have to reduce the disbursement by a credit you got on the closing statement for taxes there were due for the period you did not own the property. 

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3 Replies
Anonymous
Not applicable

Can the Property (real estate) taxes be the amount on the Escrow Disbursement Breakdown in my annual escrow account disclosure statement or where do I find the amount?

if you didn't pay it you can't claim it. 

 

if you have a real estate tax escrow account your monthly deposits and any money deposited into it at the closing of the purchase are not deductible.  the IRS position is that the escrow agent is your rep and thus the taxes are not paid.  disbursements from the escrow a/c to the tax authorities are deductible but if you just closed on the property you may have to reduce the disbursement by a credit you got on the closing statement for taxes there were due for the period you did not own the property. 

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Level 15

Can the Property (real estate) taxes be the amount on the Escrow Disbursement Breakdown in my annual escrow account disclosure statement or where do I find the amount?

Money placed in or deposited to an escrow account is your money and remians your money until such time it is used by the administrator of that escrow account to pay a qualified deductible expense. You can not claim a deduction for any monies placed in an escrow account. However, you "may" be able to deduct monies taken out of an escrow account if that money is used to pay a qualified deductible expense.

For example, most escrow accounts are set up to pay property taxes and homeowner's insurance.  Monies taken out of that account for property taxes is a deductible expense. Monies taken out of that account to pay homeowner's insurance *ON YOUR PRIMARY RESIDENCE* is *NOT* a deductible expense.

 

Level 15

Can the Property (real estate) taxes be the amount on the Escrow Disbursement Breakdown in my annual escrow account disclosure statement or where do I find the amount?

Further clarification:
Every year, usually the anniversary month of the mortgage, you will receive an annual escrow account statement. That statement shows the monthly contributions to the escrow account each month. It will also show the estimated disbursements from that account, along with the actual disbursements.

Those actual disbursements are what you can claim, if they are qualified. For example, the actual disbursement for property taxes is deductible on your 2019 tax return, if (and only if) the disbursement occurred in 2019.

The actual disbursement for the property insurance is not deductible at all if it was used to pay the property insurance on your primary residence, 2nd home, or any other non-business use property. It is deductible if it was used to pay insurance on your rental or other business use property as a qualified rental or business expense. But again, for your 2019 taxes it's only deductible if the disbursement actually occured in 2019.

 

If deductible disbursements occured in 2020, then you need to file that statement with y our 2020 financial information, as you will need it for claiming the deduction on your 2020 tax return that you will complete and file next year.

 

If you do not have your annual escrow account statement, then chances are pretty good that you can log onto your mortgage accoutn on line with whatever lender or escrow management company manages your escrow account, and pull a copy of the annual statement from there.

 

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