Can I claim the property tax from my real estate tax settlement on my return?

by Dafna Meltzer, CPA | Feb 21, 2018
askacpaicon

I received a 1098 from my mortgage lender. Only the interest paid on my loan is on it. It states on the back that they do not report to the IRS the amount of real estate taxes I paid. I also received a Real Estate Tax Statement from my county treasurer. It has the amount of real estate taxes I paid. My mortgage lender sent the property taxes to the treasury for us. It is included in our mortgage payment, so I did not ever write a check or give money directly to the treasurer’s office for property taxes. Can I claim the property tax amount on my real estate tax statement?

A taxpayer can deduct the full amount of real estate taxes paid, whether they were paid directly to the locality or through the mortgage company as part of the monthly payments. In this specific case, the amount of real estate taxes is usually listed on Form 1098 and/or in the treasury's receipt, which reflect the deductible portion. (The mortgage company not reporting this to the IRS is of no relevance.)

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Dafna Meltzer, CPA, is with Meltzer & Meltzer CPAs in Elkins Park, Pa.

Disclaimer
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Ask a CPA

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.

Search