I bought the second home for myself living because I have to work in another city on the weekdays. The closing date was on September 2019. The question is should I input the the additional home property tax?
The closing cost already included the property tax for a few months of the year 2019. Should I find it in the closing statement and use the value?
Deduct the prepaid amount.
Prepaids are expenses or items that the homebuyer pays at closing, before they are technically due. They are necessary to create an escrow account or to adjust the seller's existing escrow account.
Prepaids can include taxes, hazard insurance, private mortgage insurance and special assessments.
Yes, you should find and include your property tax paid for your second home.
If you already know that you will be limited to only claiming $10,000 of state and local taxes or that you will not be using itemized deductions, then it would be worth finding that information and including it on your return. Just be aware that under certain circumstances, your bottom line refund/balance due may not change.
There are two fields for the property tax. in the closing statement. One is in Prepaids and the other one is in Initial Escrow Payment at Closing. I am not sure which one is correct one. Please see the image.
Deduct the prepaid amount.
Prepaids are expenses or items that the homebuyer pays at closing, before they are technically due. They are necessary to create an escrow account or to adjust the seller's existing escrow account.
Prepaids can include taxes, hazard insurance, private mortgage insurance and special assessments.
Hi. I was wondering if you could tell me how to add in additional property tax? It was option I had last year, but don't see that same option this year.
thank you
To add property tax for another home or property:
Deductible real estate taxes are generally any state or local taxes on real property levied for the general public welfare. The charge must be uniform against all real property in the jurisdiction at a like rate.