Property Tax Deduction

India62 · #1 (**permalink**) 04-06-2009, 11:02 PM

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

TaxGuru · #2 (**permalink**) 04-13-2009, 12:55 PM

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!