Property Sold... Who pay taxes?

[Krishna D.]

Hello,

When a property is sold, who pay the taxes, the buyer or the seller?

[Vlad K.]

You question property taxes, right?  

Here is what happens at the closing with property taxes:

#1 buyer pays for taxes prepaid by the seller - tax-deductible expense for the buyer.

#2 buyer gets a credit for taxes unpaid by the seller. Even though the buyer will have to pay the whole installment of taxes, the seller's portion is not a tax-deductible expense to the buyer, because the payment is offset by the credit buyer receives on closing.

Let me know if you have additional questions or need clarification.