Many sellers want to make sure they have paid their property taxes in the current calendar year so they can claim this benefit when filing their Income Taxes for the same year. Your League City Real Estate Experts have the answers! Call The Brian Worrell Team if you need any clarification, 281-948-7042.
There are a few options for paying property taxes:
There are a few options for paying property taxes... This example is based on assuming a scheduled closing date of 12/30/2011.
Option 1. Pay each of these yourself with CASHIER'S CHECKS to each tax entity in at each of their offices respectively in person. Get a copy of each cashier's check. And get a copy of the paid receipt. This would ensure all taxes are paid in 2011.
Option 2. Do not pay anything now. If on the 30th, it looks like we are not closing on time, then pay the taxes online yourself. The title company will need to retain the total amount of taxes from your proceeds until they can verify through each tax entity that they have been fully paid. They they will send you that money once verified which may take several weeks. This would ensure all taxes are paid in 2011.
Option 3. Taxes will be paid at closing on the 30th from your proceeds. If the closing is delayed for whatever reason, taxes would be paid in 2012 from your proceeds. The Income Tax benefit of paying for 2011 property taxes would have to be claimed at the end of 2012 with this option.
Thoroughly confused?? Please feel free to email me any specific questions, email@example.com