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My closing costs show Prepaids: property taxes: $4,100 and Initial Escrow Payment at Closing: property taxes: $1376. Do I enter both numbers or just the second?

 
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My closing costs show Prepaids: property taxes: $4,100 and Initial Escrow Payment at Closing: property taxes: $1376. Do I enter both numbers or just the second?

 Maybe neither. 

 First, money deposited in your escrow account does not count as property taxes paid, because it is still your money until the bank uses that money to actually pay a property tax bill. 

 The amount recorded on your closing statement as property taxes paid is deductible if it was actually paid to the town or county or other taxing authority.   

You can also deduct as property taxes you paid, any money that you paid to the seller to reimburse them for taxes that they paid in advance.   This is usually shown in one of the adjustments sections. 


 On the other hand, if you live in a state where property taxes are paid in arrears, then the seller gave you a credit for taxes that you would pay that cover the time when they owned the home. You can't deduct those property taxes and must reduce your deduction by the amount of the credit.  You can only deduct property taxes that you actually paid, and that apply to the dates when you owned the home. 


 If you need help deciphering your closing statement, you might ask your attorney or real estate agent for help. 

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