Hi
I have simple query. I know we can deduct Prperty tax paid for year 2008 but what about property tax deducted in escrow payment as 4 monh advance payment. I bought home in Oct-08 so this advance deduction in Escrow account is for 4 month starting Jan09 thru April-09. Can I dedct this amount in my 2008 tax return as I have already paid in 2008
Please help
Thanks
India62

Yes, you can deduct property taxes that were paid from the escrow funds during the purchase of a new home. The escrow statement will reflect these payments being made by the Seller!

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