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Property taxes paid by the estate to the taxing authority, or credited to the buyer on the closing statement when sold, are deductible on line 11 of the 1041. Property taxes in escrow are not deductible.

Would you please clarify? Property taxes were paid during probate and that is clear. I am confused by the difference of property taxes credited to the buyer and property taxes paid in escrow. The tax bill that hasn't been issued covers July to December. A credit for the taxes from July to close of escrow will be credited to the buyer.

It was my sister's primary residence and was not rented during probate. Oh well, it was worth asking if utilities might be deductible. No mortgage, so their is no mortgage interest.

Thank you for the reference to IRS Pub 551.
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