How do I know what property taxes to deduct from a HUD-1 settlement?

[jpaddy1127]

Can I tax the adjustments unpaid by the seller portion & can I deduct the city/town, and county taxes on lines 1005 & 1006?

[PatriciaV · Accepted solution]

Yes, you may report those expenses listed under your "side" of the HUD-1 Settlement Statement - Buyer on left, Seller on right. If the property taxes were paid out of your proceeds/cash at closing, you may be able to deduct these expenses.

Property Taxes paid by the Buyer may appear on Lines 210-211. Those paid by the Seller would be on Lines 406-407.

Note that the HUD-1 form can be customized so the line numbers may change.

[revised]