Property Tax on Bank's Statement of Interest?

[zeros]

The statement received from the mortgage company stating the total interest paid also includes the property taxes paid. The property taxes paid might include special assessments, etc. which would not be deductible. Do you require the actual property tax bill to examine for this or simply enter the amount on the statement?

[Uncle Sam]

Property Tax on Bank Statement of Interest

I usually use the amount shown on the bank's statement.

Let the IRS require the banking institutions to break it down before obligating us to do their work for them.

Yes - I KNOW that it's more proper to physically examine the real estate tax bills - but how many clients actually bring them in? Most of them normally just give you the statement from the bank and don't reallze there are assessments included in there that may not be deductible. Same for those who pay the tax bills directly outside the mortgage - they just show you the cancelled checks.

[Black Bart]

Sam's right, dude

You can't worry about stuff like that -- you'll never get any tax returns done.

Just use that statement -- 99 and 44/100s of the rest of the tax world does and even the auditor will if you ever happen to run into one.

[S T]

Tend to agree

What I find is that the Taxpayer while is suppose to receive a "memo copy" of the Property Tax Bill, often times does not receive. The actual Prop Tax Bill goes to the Lender on an account that has "Impounds"

Certain areas - counties, will allow you to retrieve a copy, but usually not for the whole period of the prior tax year that we are preparing. Just tried one last nite for Los Angeles County, Calif - and it couldn't retrieve due to an address being in a multi unit such as a Condo Complex, and the client claims they never received a copy.

I needed it for the split for land/value on a conversion from personal residence to rental.

Unless I know that there is something "major" I go with what is posted on the 1098 form.

Sandy

[ChEAr$]

No!

One cannot rely on the 1098 form for correct property taxes, for reasons the OP cited.

You have to know your clients and know the local tax structures in order to determine how much to subtract. In our area, there really is only one adjustment, and that is a $144 garbage fee for certain areas of a nearby county, and the address along with questioning client gives me the true answer.