Home
Tax Articles
Tax FAQ
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

Are real estate taxes deducted at the short sale closing?

August 10, 2011


From:  Carol
Date:  9 Mar 2011

Useful information on the short sale. Thank you.

Are real estate taxes deducted at the short sale closing (which in turn decrease the amount the bank gets, which increases the debt foregiveness) deductible by the homeowner on Schedule A even though they did not technically pay them?

Thank you,
Carol

Answer

Date:  20 May 2011

Hello Carol,

Yes.

The taxpayer is still selling the property that he or she owns, just for an amount less than the balance of the mortgage. The property taxes are being paid using the proceeds from the sale of the property.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

Are real estate taxes deducted at the short sale closing?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links


Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter
!

subscribe
unsubscribe