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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 Preview

    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 ...

    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.