Quote:
Originally Posted by BlueStarAirlines
For many folks that have a mortgage, the taxes are reported on IRS form 1098. Whatever is in that box is what goes in the 1040. Since escrow is collected and paid by the mortgage company, folks just go off of the documentation provided.
I agree that for folks with no mortgage its on them to ensure the correct amount of taxes is reported....
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That's an interesting (no pun intended) point. I don't have any mortgages and I just pulled out an old 1099 from a mortgage I had a few years ago. I suspect you're right, if the bank was collecting Escrow, the amount paid would show up as one lump some and I doubt the IRS would challenge that, even though it would be incorrect.
All this nonsense about bonds, baffle me. The Bond is nothing more than an additional cost when you buy a home in TV, new or pre-owned. It's not a "pay as you go" expense, unless you elect to do it that way ... in which case, you get an exorbitant interest rate and any associated fees. Along with the fact that it's legally not tax deductible.
WTH? If I home is $500,000 + $30,000 Bond, the true selling price is $530,000. It's not complicated.
Granted, not all pre-owned homes are identical, but if one has a $20,000 outstanding Bond, you're paying $20,000 more than the sale price.
Geez, it's 4th grade math.