Property taxes at closing

[nanileehang2-]

I bought a house on July 2nd 2019. The 1098 doesn't show property taxes paid. I looked at the settlement and it shows $299 for county taxes for 4 months. I don't know if it was reimbursed to seller or

[DMarkM1]

If it is in your column "buyer"  then you paid it.  Normally, seller has already paid for the year or six months and at settlement you pay the seller back a prorated amount.  Enter it as property taxes paid in TurboTax.

[Anonymous]

its difficult to say.  some counties/states like Illinois taxes are imposed in arrears.  that means 2019 taxes aren't payable until 2020.  in that case, you probably got credit for the portion of the taxes related to the part of 2019 you did not own the property.         others charge for that year in which case the seller paid for taxes related to the period after the sale for which you would be a charge.

the way to tell is were the taxes an addition or subtraction on the closing statement.  there should also be identification as to what period it covered.

if it's a credit you would use it to offset the taxes you pay after closing.  if it is a charge, then it is deductible in 2019.    note that real estate escrow deposits are not deductible.  it is only when the taxes are taken out of escrow to pay the bill that they are deductible.

[nanileehang2-]

I looked over the papers that describe what counted as closing costs after I posted my initial question. The 299 was listed in the buyer or "borrower" column but it was on the initial escrow part. So because it's initial escrow it is not deductible, right? If that's the case then would I say I technically didn't pay property taxes for 2019? I can't find anything else in the paperwork that relates to property taxes besides the amount that goes into escrow every month which is 74.75. We bought in July and didn't have to pay until September first.

[JulieS]

Yes, you are correct, the amount going into escrow can't be deducted by you as property taxes paid.

When your property taxes are paid through an escrow account, usually the lender will report the amounts of property tax that were paid during the year on your 1098-INT Form.

[nanileehang2-]

Ok so with that being said,  I would just say that I did not pay property taxes in 2019?

[JulieS]

Yes.