The payment of your real estate taxes and the timing of the payment can have a big impact on your income tax return. Read on to find out how!
Write Your Property Taxes Off
Real estate taxes in Texas aren’t due until January 31 next year, but you have the option of paying them earlier during the current year. According to the Internal Revenue Service, property taxes are 100% tax-deducible for the year you make the payments.
Double Your Deduction
If you time it right, you can double your deduction from property taxes. For example, if you paid your 2013 taxes in January 2014, then you pay your 2014 taxes in December 2014, you can claim both sets of taxes as deductible expenses for the current year.
Did You Buy a Home?
You can even write off the real estate taxes you paid at closing when you bought a new home. Check your HUD-1 statement to see what the amount paid was. If you need any help reading the statement, or don’t know what it is, give us a call or contact us.[/vc_column][/vc_row]