How do I claim (back) property taxes we paid on a foreclosure?
We purchased a foreclosure in November of 2008. We paid substantial back property taxes on the new home. We did not receive a 1098 form for this portion of our property taxes. Our lender is saying to use our HUD statement to show the back taxes. I'm afraid the IRS does not have records we paid those taxes. How do I file to reflect this payment we made?
Public Comments
- Property tax payments are not normally reported to the IRS by those that receive them. So having proof that you paid the tax such as the HUD statement will work just fine if you are ever questioned.
- You are correct, the IRS does not have records of those taxes because they are paid to the county. If you lost your settlement sheet (HUD-1 is what it is called in slang), the title company will give you a replacement. That is where the proof is. Please check about the deductibility of paying taxes which were owed by someone else (the previous owner). 800-829-1040 IRS Help Line..
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