Real estate tax on a property I just sold.

[Jack]

Last September I paid $4,000 in tax on a property I just sold.
The buyer gave me $2,300 for the prepaid tax.

I presume on my 1040 I claim $1,700 in tax and ignore everything else?
If not, then what is correct?

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[removep...@yahoo.com]

On Dec 30, 11:20 am, Jack <W...@lippman.info> wrote:

> Last September I paid $4,000 in tax on a property I just sold.
> The buyer gave me $2,300 for the prepaid tax.

I've seen the following scenario where I live: The seller pays the
buyer $1700, and the closing statement shows the credit of $1700 from
seller to buyer, and the seller as the owner of the property pays the
full $4000. However, I think the seller should only deduct $2300 on
their Schedule A, and the buyer should deduct $1700.

It looks like in your case the seller pays the full $4000, and at
closing the buyer paid the seller $2300. Similar, but different.

> I presume on my 1040 I claim $1,700 in tax and ignore everything else?
> If not, then what is correct?

That sounds right as it is similar to accrued interest. But that's
just my guess.