How are real estate taxes settled at closing handled (not an escrow question)?

[mtimko-nj]

I moved in April 2016 (sold/purchased). Both myself and the seller I purchased from paid 2nd quarter taxes on each home prior to the move, which were both settled at closing. My Mortgage Interest Statement from my old home over-reports how much I actually paid, because it does not consider what was settled up at closing. My Morthgage Interest Statement from my new home under-reports how much I actually paid, because of what was settled up at closing. The net difference should be about an additional $1000 deduction for myself. How should this be handled?

[MichaelL1]

On the sale of the home, you get caught up on the property taxes, as they are paid in arrears.  The amount you paid at closing (or the amount your proceeds were reduced by) gets added to the property taxes on the residence sold for the property tax deduction.  

On the purchase of a home, the seller generally gets the taxes paid up to date in the way of a credit to you at closing, so your actual property taxes on the new home is what you actually paid (or paid out of escrow) less the credit at closing.

Confusing I agree.  Best thing to do is get a sheet of paper out and do the house sold, then a new sheet for purchase and make sure this total of the two is listed as Real Estate taxes.  Keep the sheets of paper in the tax file.  

[mtimko-nj]

In NJ taxes are due on the first day of the second month of the quarter (partially in arrears but more in advance). I have already manually calculated what I've paid, but didn't know if it would get me into trouble to manually revise the numbers which would not agree with what is published on my statements.

[MichaelL1]

When you buy and sell, change lenders amounts don't agree all the time with 1098's.  That is why it is good to lay out you are going to deduct and keep that in your tax folder, should someone ask you two years from now.  (hopefully you will never need it)