i closed on my house mid November, 2017. During closing, I paid around $1700 towards property tax and home owners insurance (in to my escrow). Same is listed on my closing disclosure. But, on my 1098, i only see prepaid mortgage interest. my question is, Can i deduct this initial escrow payment of $1700 along with mortgage interest? i found contradicting answers in the forum. Please advice. Thanks
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Home owners insurance is never deductible as a personal expense on schedule A.
You can deduct real property taxes you pay starting from the date you purchase the property. The official sale date is typically listed on the settlement statement you get at closing and any property taxes paid by the buyer are deductible, as long as they are not delinquent property taxes. On a HUD statement, these will be on lines 106 and 107.
As far as escrow amounts for real estate taxes, they are deductible when paid to the taxing authority by your lender and they most often are on your form 1098.
Home owners insurance is never deductible as a personal expense on schedule A.
You can deduct real property taxes you pay starting from the date you purchase the property. The official sale date is typically listed on the settlement statement you get at closing and any property taxes paid by the buyer are deductible, as long as they are not delinquent property taxes. On a HUD statement, these will be on lines 106 and 107.
As far as escrow amounts for real estate taxes, they are deductible when paid to the taxing authority by your lender and they most often are on your form 1098.
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