Many lenders hold reserve accounts for tax payments.  The taxes are paid by the lender to the County twice a year.  Property taxes are fully deductible.  Remember, too,  about the pro-rated property taxes you may have paid at closing.These will show on your settlement statement and are also deductible.  If you do not have a copy of your closing statement, calll your Real Estate agent or Escrow Officer for a copy.  Thanks to the Seattle Times and Bankrate.com for this reminder!

March 16, 2009