Question

Are the prepaid property taxes that are included in the closing of a new home deductible?

Forum|Forum|1 year ago
March 23, 2025
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Yes, you may deduct the property taxes you paid at closing. Since you are a cash basis taxpayer, the taxes may be deducted when paid.

Here is how to navigate to the entry for these taxes paid not included on Form 1098 (mortgage interest form):

Navigate to Federal > Deductions & Credits
Choose Add/Edit Property (Real Estate) Taxes
Enter or edit the property taxes paid