Income Tax Preparation
GainsKeeper Compatible
  When Taxes Are Deductible

You can deduct real estate taxes that are imposed on you and that you paid either at the settlement or closing of a sale, or to a taxing authority during the year.

If your monthly house payment includes an amount placed in the care of the lender ("escrow") to be saved up and used to pay real estate taxes when due, you can deduct only the amount that the lender actually pays to the taxing body even though this may be more or less than the amount you have contributed to escrow during the year. You cannot deduct the portion of your escrow payment that goes to pay homeowner's insurance, unless you have a qualifying home office.


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