01-31-2013 07:46 AM
Morning to the fantastic Redfin forums
I have a question regarding my 1098's i got from my bank. The amount of taxes listed are only those that were directly paid to the county in May and August. However, i dont see anything from my Hud 1 on these regarding the amounts i paid at closing.
We closed on our house April 23/2012. The amounts I DO see on my 1098 are the interest and FHA MIP, which DO include the amounts from the Hud 1.
I was under the assumption that any taxes we paid to the seller at closing we could claim on our tax return. Have i been informed incorrectly? First time home buyer here so i'm a tad confused.
01-31-2013 09:57 AM
Yes, you can claim on your tax return any taxes that you paid to the seller (reimbursement for taxes the seller already paid for periods after the close date, when the seller no longer lived in the house), in addition to taxes listed on the 1098.
If you had prepaid interest on your HUD-1 that was not on the 1098, you could claim that, too. But, it sounds as if your 1098 already includes that interest, so you can't double-count it.
01-31-2013 10:22 AM - edited 01-31-2013 12:23 PM
Thank you !! i thought i knew what i was doing but wanted to double check!
So on our Hud 1 we have taxes for 1/1/2012 - 4/23/2012 (the day we closed) AND we have the full amount for 2011 on there it seems. Now the amount for 2011 on the hud one is the deposit charge i'm guessing for our escrow so we can't use that. we can only use the amount for the first few months of the year that the seller owned the home correct?
or is it cuz we bascially paid back the seller everything he paid in advance that we can claim that whole amount? lol now i'm confused.
Dunno of this matters but the house was a short sale..
01-31-2013 12:55 PM
Something else i just noticed, the loan origination fee i paid is not on my 1098 either. but according to the irs publication it says if its over 600$ and listed as loan origination or point etc i can claim it. it is listed as a flast amount on my hud 1. So i can safely claim this even if its not on my 1098?
01-31-2013 09:05 PM
If your loan was sold at all, even before your first payment, then the money you paid on your HUD pay have been sent directly, or paid through the settlement agent (not the lender). If the taxes were due imminently at closing, the money may have gone directly to the town, or directly to the seller of the home to re-imburse him/her in proration for bills already paid. This does not mean you cant deduct it, but it means that your current servicer (lender) would not have the record of it, and would not be able to give you the figure. That figure would only appear on your HUD.
You would likely have paid taxes, interest, and insurance FROM THE DAY YOU CLOSED (but not before). Prorated items will appear on your HUD statement for any cycles that you split with the seller.
To be certain, you may want to contact your settlement agent/escrow company/attorney (dedpending on your state) to ask exactly how much you paid, and to whom.
You might also contact the town.
A point of interest: Lenders are not required to send out 1098 forms if the interest paid to them (for instance, an interim lender, or a lender that took over at the end of the year) is less than $600. The money is still deductible according to usual IRS regulations, but you WILL NOT likely receive a 1098 for it. This would also appear on your HUD, or on your statement from the lender in the month that that interest was due.
If you have your taxes done by someone - definitely make sure they have a copy of your 1098s and your HUD. If you do them yourself, double check with the authorities that were paid (the insurance company, the town, the broker, the lenders) to obtain the figures.
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01-31-2013 10:02 PM
Most loans are sold prior to the first payment being due and a servicing company is assigned. The 1098 sounds like it came from the servicing company. Sometimes two 1098's are sent: 1) from the originating mortgage company and 2) from the loan servicer for the lender/investor(s) who bought the loan.
01-31-2013 10:57 PM
Your description sounds a little strange. What you should see on your closing statement is a credit to the seller and charge to the buyer for taxes prepaid by the seller from the date of closing to the end of the county fiscal year. For example, if the county's fiscal year ends on June 30, you would see a credit to the seller and charge to the buyer of $XXX for taxes paid from 4/23/12 to 6/30/12. These are taxes you paid at closing -- by reimbursing the seller, who paid them when they were due, earlier in the year. (Incidentally, the seller has to report this line item as income, if he itemizes, as it's just like an income tax refund.)
You can deduct only those taxes you actually paid, of course. You will have paid them at closing, and through an impound account, if you have one, or by writing a fat check to the county.
02-01-2013 05:27 AM - edited 02-01-2013 05:28 AM
Our Mortage is with Us bank, and i have two 1098's. Both say Us bank and both have two different accoutn numbers on it for the same property. When i spoke to my Loan officer, he said us bank was going to sell my loan, but did not they just transfered it to a different department, in stead of US BANK N A to US BANK HOME MORTGAGE. And yes they are actually the servicer of my account i checked weith MERS and the other places to see if it was acutally anyone else.
I went over my HUD and compared it to the totals from my 1098's, all the interest for the year including the dailiy prepaid interest is on the 1098. All the FHA mortgage insurance premiums match up. The only amounts that are NOT the same are lines 210 and 213 and 801/803.
lines 210 are the prorated taxes from 01/01/12 to 04/23/2012 for $1573.68. This is part of the year the seller owned the house since we closed on 04/23/2012.
lines 213 are the taxes for the entire year 2011 $5006.54. As i understand it when you pay escrow its in advance for the next year so i assume this was already in the sellers escrow. ( 2nd payment of taxes was SOLD but the sellers had that taken care of before closing), and was transfered to us.
Now these amounts also show up on the sellers side of the Hud as well, on lines 511 and 513 respectively.
Our county sends out the new tax bills in May, so we got it right after we closed. However, the assessment went down by quite a bit and the taxes actually dropped to $3854.72.
$3854.72 which is the new 2011 assessed bill is the only thing that matches the amounts on my 1098. This is the actual amount Us Bank paid to the county. And this is why i'm confused as to if / what amounts on my Hud i can claim.
Also, Line 801 and 803 are the same amount $620, the origination charge and adjusted origination charge. And i just noticed it says points are 0.00%, since technically no points were paid i do not think i can take this?.
02-05-2013 11:40 AM
I have a related question about 1098's. Long story short, I bought in June with an FHA loan. The loan was sold about a month later. I got 2 1098's. The servicer 1098 shows almost 9k in mortgage insurance. . The other 1098 is from the originator and it shows ~6700 in mortgage insurance.
I can't believe I've paid ~15k in mortgage insurance. MY monthly MIP is ~400 so I'm thinking the servicer added in the UFMIP of ~6500? Do I need to get this fixed or should I just ignore the other 1098?
02-05-2013 12:10 PM
The MIP is kind of a moot point since they made a change this year that you can no longer claim it and yes they probably did add in the upfront portion. My fha 1098 did the same.