Which is better to close in December or January for the property taxes
Closing in December:
Tax Deduction for Current Year:
If you close in December, you may be able to deduct property taxes and mortgage interest on your current year’s tax return. This can reduce your taxable income and potentially lower your overall tax liability.
Pro-rated Taxes:
At closing, you’ll typically reimburse the seller for property taxes they’ve already paid for the portion of the year you’ll own the property. This means a smaller tax payment upfront, but you assume responsibility for the next year’s taxes sooner.
Year-End Benefits:
Closing before year-end allows you to claim…
The skinny
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