Ask Terry Questions Sale of home and Property Taxes

Sale of home and Property Taxes

By Terry Savage on March 26, 2024 | Taxes & Economy

Hi Terry! My husband and I sold our home in June 2023. We bought a new house in July 2023. The amount we got from closing for property taxes wasn’t even close to covering the amount for 2022. Who gets to claim the 2022 property tax payments on their taxes? Do the sellers get to claim the 1K for 2023 (that they gave us at the closing settlement) and we claim the additional 5K? Or do we get to claim all 6K?

Terry Says

This all depends on how the sales contract was documented, which is why you used a real estate attorney! That will likely specify that each –the buyer and the seller — gets to deduct the portion of taxes that were paid in 2023.
And that assumes that you are itemizing your taxes instead of taking the standard deduction.
As you know the 2023 maximum deduction for state and local taxes is $10,000 for married filing jointly, and $5,000 for married couples filing singly. That limit will go up a bit for 2024.

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