Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm closing on a house next week, and am a first time homeowner. Given this change in my finances and that my wife and I are expecting a baby in December, and my wife is now on indefinite maternity leave, I'm trying to think through my tax situation and specifically my W4 allowances.

After we close, I'm paying property taxes into escrow at the estimated fully assessed rate, which is in excess of the actual tax bill until the property is reassessed. Depending when this new assessment happens, I will be significantly overpaying my property taxes. Which is the deductible expense, the property tax payment, or the escrow payment?

My guess is only the actual property tax payment is deductible, but it isn't like I can access the cash in escrow so I don't know.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.