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Property tax credit on a closing statement

  • 1.  Property tax credit on a closing statement

    Platinum Most Valuable Member
    Posted 03-30-2023 10:03 AM

    A client closed on the 1031 acquisition of commercial property.  The closing statement indicated that the seller owed property tax for the period 1/1/22-10/15/22 which is due in 2023.  The closing gave a credit of the tax, $95,000, to the buyer, my client, on the closing statement. Not escrowed.  Is the buyer acting as a fiduciary, merely holding the funds, or is it income to him and take a deduction when it's paid?  He didn't own the property from 1/1-10/15 and it would seem that he's paying the full year.  The number is large and i want to be sure this is correct.

    Thanks,



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    Michael Rubinstein
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
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