TAXES from HUD 1

[Pacun]

Besides asking for the mortgage bills from last year, how do we know if Wells Fargo included the taxes charged on the HUD 1 on 1098?

Do you check the HUD 1 each time a client buys a house or everything is on the 1098?

[Yardley CPA]

I check the HUD-1 to see the real estate tax activity reflected on it.

[jasdlm]

I check the Hud1 and 1098 against the county records, which are almost always on line and are public information. It's quick, and no need to call the client. Definitely need the Hud1 to check for credits on tax payments, etc.

[jklcpa]

Yes, I check HUD-1 back to county records for the real estate taxes pd in advance by the seller that the buyer is charged for because my state's fiscal year end is 6/30 with tax due date of 9/30 or 10/1 and these aren't included in the 1098 r.e. taxes paid from escrow many times. I'll also tie in the mortgage interest shown on the 1098 to make sure the interest in advance paid at closing is included.

[Pacun]

I'll also tie in the mortgage interest shown on the 1098 to make sure the interest in advance paid at closing is included.

So you need to see the monthly bills to add them up and then add the HUD's mortgage interest paid and then compare to what it is reported to the 1098, correct?

[michaelmars]

SINCE THe hud usually breaks down the monthly or even daily amount, just see if the deduction equals what it should be for the period owned.

[jklcpa]

Some mortgage company's 1098s are accompanied by a statement that shows the monthly activity for the year with a breakdown of P & I and escrow additions too.

[joanmcq]

In CA, as far as I've seen, the HUD taxes are never on the 1098. They aren't actually PAID by the lender, it's a credit for what the previous owner paid.