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Level 2
posted Apr 4, 2022 7:59:00 AM

How to claim my property tax deduction if some of it was prepaid?

I purchased a property as my primary residence and it got closed on Jan 8th 2021. Because the seller had already paid the property tax for the first quarter of 2021, I had to pay it to the seller as part of the closing cost. I have a mortgage as well as an escrow account so the property tax for the rest of the year was taken care of by the bank.

 

Am I able to claim the part that I paid to the seller in my property tax deduction? Thanks.

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1 Replies
Expert Alumni
Apr 4, 2022 8:10:00 AM

Yes, just enter it as you normally would. You do not need a reporting form such as 1098. If your 1098 has an amount, just add this to it.