Homeowners-- a tax qeustion

[Cindy B]

We are in the process of settling for our house, and it looks like the settlement will be in four weeks! (December 18th)


Now how does that tax write off work,will we be able to write off the prepaid taxes we paid in settelment when in essence we only have been in the house for about a week?


Thanks!

Now what about interest, do I wait for the interest statement as well and do that as well?

Its been so long since we owned a house so I can't remember how this is done.

 

[janette]

You will only be able to write off actual taxes paid, not the estimated that you pay in closing.

You can write off some of the points paid at closing.

Depending on the closing and taxes you might have trouble meeting the minimum for itemizing.

If you are paying the taxes yourself you can pay them in January and get the write off next year. That way you'll be able to deduct the taxes you pay.

Depending on the due date the taxes may have already been paid for the year.

 

[Cindy B]

We are already over the minimum for itemizing due to the fact we give over 10% of our income to charity, we donated a car, and a non resident wage tax....



We pay 5 months prepaid, no points.