I closed on my home in 2018. Does my 1098 automatically include closing cost taxes? If not, will I need to find my closing statements and include the taxes? Are there only certain taxes I can include? This is my first time using real estate deductions.
No your 1098 will not show property taxes paid at the closing of your home. You will find the property taxes you paid at closing on your HUD-1 statement that you received at closing. Real estate taxes are the only taxes that are deductible. Transfer taxes paid at closing are added to the cost basis of your property and are not deductible.
No your 1098 will not show property taxes paid at the closing of your home. You will find the property taxes you paid at closing on your HUD-1 statement that you received at closing. Real estate taxes are the only taxes that are deductible. Transfer taxes paid at closing are added to the cost basis of your property and are not deductible.
I looked through all the paperwork from closing and did not find something relating to HUD-1. I looked online and it seems that with the purchase year being 2018, the HUD-1 was replaced with "Closing Disclosure". Can you confirm this is correct? If so, then I did find it! Thank you for responding!