Originally Posted by dcolagro
I sold my home last year (we owned it outright no load against it). During the sale I paid the buyer the estimated property taxes for the portion of the year I owned it. I got a 1099-S form from the title company, but box 5 was empty. How do I claim, or can I claim the portion of taxes I paid the buyer on my taxes for that year? Do I need to go back to the title company and have them add that info to the 1099-S form?
It is very common for property taxes to be deducted in the year that the house changes ownership as that is the year in which you experienced the expense and paid the cash;as the payee needs to File Form 1099-S with the IRS,For a real estate transaction involving a residence, the payee enter the real estate tax paid in advance that is allocable to the buyer. they do not have to report an amount as allocable to the buyer for real estate taxes paid in arrears. they may use the appropriate information included on the HUD-1, or comparable form, provided at closing. For example, a residence is sold in a county where the real estate tax is paid annually in advance. The seller paid real estate taxes of $12k for the year in which the sale took place. The sale occurred at the end of the 9th month of the real estate tax year. Therefore, $300 of the tax paid in advance is allocated to the buyer, by reference to the amount of real estate tax shown on the HUD-1 as paid by the seller in advance, and is reported in box 5 . you need to contact the payee.however, No reporting is required for the sale or exchange of an interest in the types of property, provided the sale is not related to the sale or exchange of reportable real estate;A manufactured structure used as a dwelling that is manufactured and assembled at a location different from that where it is used, but only if such structure is not affixed, on the closing date, to a foundation. This exception applies to the transfer of an unaffixed mobile home that is unrelated to the sale or exchange of reportable real estate.