Property Tax Deduction - Seller gave me tax credit @ closing?

I bought a home in 2007 in the state of Texas. At closing seller gave me 2007 tax credit 2034. My 2007 tax bill was 2567.57.





(1) Should I report 2034 as income? It was applied to my closing costs though.





(2) Also on my 2007 tax deduction how much can I deduct for property taxes? Thanks

Property Tax Deduction - Seller gave me tax credit @ closing?
The $2,034 has no tax consequences to you; it is neither income nor is it deductible. The seller deducts that for his property taxes paid. It's not income to you, as you are just paying it to the tax district on the seller's behalf.





Of the $2,568 you paid, $2,034 is the seller's and the remaining $534 is your property tax deduction for the year.
Reply:I agree with Wartz. But just to make it clear:





(1) No not income





(2) 2567.57 - 2034.00 = $533.57 property tax you paid
Reply:It is not clear what this credit was so I'll guess.





You bought the home part way through the year with an agreement that the seller would pay taxes through the closing date. The credit is nor a reduction of the sale price but an amount to cover his share of the tax. You got the whole bill so the seller paid $2034 of it. The seller deducts that, you deduct the difference.
Reply:The 2034 credit the seller gave is nothing more than a reduction in purchase price. It is not income.





You can deduct property taxes that amount actually paid, including what may have been paid via the closing statement.