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How do I enter Property Tax and Mortgage interest from my escrow closing statement, these are not reflected on a 1098?
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How do I enter Property Tax and Mortgage interest from my escrow closing statement, these are not reflected on a 1098?
The Form 1098 Mortgage Interest Statement must be mailed to you by January 31st. Once received, Box 1 of Form 1098 shows the amount of Mortgage Interest paid. If Box 1 is blank, then contact your mortgage lender.
Some mortgage lenders report the Property Tax you paid in Box 11 of Form 1098. If Box 11 is blank, you can find the Property Tax paid by doing the following:
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How do I enter Property Tax and Mortgage interest from my escrow closing statement, these are not reflected on a 1098?
The Form 1098 Mortgage Interest Statement must be mailed to you by January 31st. Once received, Box 1 of Form 1098 shows the amount of Mortgage Interest paid. If Box 1 is blank, then contact your mortgage lender.
Some mortgage lenders report the Property Tax you paid in Box 11 of Form 1098. If Box 11 is blank, you can find the Property Tax paid by doing the following:
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How do I enter Property Tax and Mortgage interest from my escrow closing statement, these are not reflected on a 1098?
Again, the only evidence I have of these payments made are on the final closing documents form from escrow on the purchase of the home.
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How do I enter Property Tax and Mortgage interest from my escrow closing statement, these are not reflected on a 1098?
For Mortgage Interest - The mortgage interest on Form 1098 Box 1 should already include the pre-paid interest on your closing statement. Your numbers on your tax return need to match the Form 1098 Box 1 amount. If there is a discrepancy, contact your mortgage lender.
For Property Taxes - The key is not to duplicate your deduction. The seller pays for property tax from Jan 1, 2017, up to the date of sale. The buyer pays for property tax from the date of sale to December 31, 2017. Keep in mind, you cannot deduct delinquent property taxes you pay on the seller's behalf from a prior year. In that case, the property tax paid would be added to the cost of your home.
See this excerpt taken from IRS Publication 17.
Division of real estate taxes between buyers and sellers.
"If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. The seller is treated as paying the taxes up to, but not including, the date of sale. The buyer is treated as paying the taxes beginning with the date of sale.
You figure your deduction for taxes on each property bought or sold during the real property tax year as follows."
Worksheet 22-1. Figuring Your Real Estate Tax Deduction
1. Enter the total real estate taxes for the real property tax year
2. Enter the number of days in the real property tax year that you owned the property
3. Divide line 2 by 365 (for leap years, divide line 2 by 366)
4. Multiply line 1 by line 3. This is your deduction.
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How do I enter Property Tax and Mortgage interest from my escrow closing statement, these are not reflected on a 1098?
Every 6 months I paid $2,500 for property tax. I bought my house in April/2017.
I had to pay 2 months of property tax in my Closing related to the property tax that had been paid by the seller. This amount is not in my form 1098 (this form has only $2500 related to the second half property tax).
Two Questions: 1) Can I use these 2 months that are not in the form 1098 as a tax deduction?
2) How do I enter this value in my return?
Thanks.