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Schedule A Real Estate Deductions for the Sale of a Home

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"The $3,600 of property taxes for the house were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year the buyer paid $3,600 for property taxes."

Which number should the buyer include in his Schedule A, tax return (3600+1950 or 3600+1650)?

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Solution Summary

This solution explains the amount of real estate taxes that the buyer will use on his/her Schedule A when purchasing a new home.

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None. The buyer cannot take mortgage interest or property taxes on the sale of a house. The seller claims the real estate taxes. The apportionment would deal with escrow. All real estate and mortgage interest paid on the sale of a home purchase go into escrow until the time that the real estate taxes are actually due. Therefore, they cannot be used or claimed by the buyer because they ...

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