real estate taxes on schedule A

[POCAHONTAS]

client's form 1098 int shows real estate taxes paid as $2,102 but the year end statement shows real estate taxes paid as $4,525.

I know that the instructions for schedule A page A-5 say that "If your mortgage payments include your real estate taxes you can deduct only the amount the mortgage company actually paid to the taxing authority" .

so the question is which amount do I deduct??

thank you

[JohnH]

It appears that the payments from the escrow account may have been made late, so a prior year's taxes were paid in the current year. I'd look at the actual transaction history for the escrow account and reconcile it back to the statement. I saw one earlier in this season (GMAC Mortgage in Michigan, I believe), which was simply wrong. After looking at the actual transactions I was able to arrive at the correct deduction.

In the final analysis, you have to use the actual transation dates in arriving at the deduction when the 1098 is in error.

[Larmil]

client's form 1098 int shows real estate taxes paid as $2,102 but the year end statement shows real estate taxes paid as $4,525.

I know that the instructions for schedule A page A-5 say that "If your mortgage payments include your real estate taxes you can deduct only the amount the mortgage company actually paid to the taxing authority" .

so the question is which amount do I deduct??

thank you

Our county has a website where you can check how much (and when) was actually received by the county.

[taxxcpa]

Tax collector web sites

Our county has a website where you can check how much (and when) was actually received by the county.

Most counties in my state have this information, but some don't. You cannot go by the statement billing the tax since it may or may not have been paid. It also could have been paid twice in the same year--once for the current year and once for the prior year. I did one return for someone who paid about five years' delinquent taxes in 2009.

Also it is possible that the taxpayer paid some from his own pocket and some were paid from escrow (but not likely).

[oceanlovin'ea]

I had one client whose statement showed the taxes as being paid but not out of escrow. They actually paid the taxes but added the amount to their mortgage. I think they were the prior years taxes.

Linda

[taxea]

I verify through the tax assessor's office. They show the date and payment amount whether paid by TP or escrow.

[ChEAr$]

The problem with county tax web sites is that they only show amounts paid over to the tax
collector and not the actual amount of the tax, which may be less, depending on whether or not there are other non deductible fees included.

we need to be especially watchful on this point and not just take the real estate taxes from
the form 1098. That amount may include non deductible garbage fees and fire fees which are NOT taxes.