When you buy a home, who should pay the real estate taxes the first year? Common sense tells us that the seller should pay the taxes from the beginning of the tax year until the date of closing and buyer should pay the real estate taxes due after closing. This way, they only pay the real estate taxes when they actually owned the property.
If the seller has already paid the taxes for the entire year, the buyer should be required to reimburse the seller for his prorated share.
This is, in fact, how real estate tax payments are usually arranged when you buy or sell a home. The home sale contract should clearly set forth these requirements--requiring each party to pay his or her pro rata share of the tax.
Than who takes Real Estate Tax Deductions?
When the buyer files his taxes for the year, he will be able to deduct the real estate taxes he paid as his deduction. However, the IRS automatically treats the seller as having paid the property taxes up to the date of sale, and the buyer having paid the taxes due after the date of sale. For more detail information visit https://www.pbctax.com/services/property-tax/property-tax-help