Is property tax paid at closing deductible? Or just the monthly payment amount.

[jerry2000 · Accepted solution]

Property tax paid at closing is deductible. If you pay property tax into an escrow account as part of your monthly mortgage payment, that is NOT deductible until the lender actually pays the tax on your behalf. That is shown on the Form 1098 that your lender gives you. You can deduct the property tax paid that way only in the year that the lender actually pays it to the taxing authority.