As you go through your regularly-scheduled year-end financial review - and if this is your first time, congratulations on getting it on the schedule! - it’s worth remembering that Uncle Sam does provide a deduction for any and all real estate taxes, as well as interest, that you have paid during the year. Here’s how you can look for this amount:
If you have a loan on the property, it’s likely that you have established an escrow account to have your servicer pay for taxes and insurance. If this is the case for you, the bank/servicer is obligated to send you a 1099 form with all amounts paid for interest and real estate taxes during the year. If you have multiple providers, each one of them will send you that form, postmarked no later than January 31.
If you don’t have a loan, or if you don’t have an escrow account, you then are responsible for paying taxes and insurance. It’s likely that the taxing entities send you the bill - so make sure you hang on to these statements once you paid them. If you have a loan, the bank will still send you a 1099 for interest you paid.
If you sold property during the year, remember that you were responsible for paying property taxes from January 1 through the date of sale. You’ll find this amount in the Closing Statement from the tile company.
If you bought the property during the year, depending on the timing of the transaction, you might have paid taxes from the date of the sale through the end of the year. You’ll also find this amount in the Closing Statement from the title company.
Do know that with the recent changes to tax legislation, there are limits to these deductions. If you have any questions, please make sure to reach out to your tax professional.