New York state tax deduction refund?

[dbradshaw]

What is the name of your state (only U.S. law)? NY

Hi all,

I have been told and I am trying to find the validity and possible reason why I heard that you can deduct your state taxes paid at closing on your tax return?

This may only apply to a New York return from what I understand.

Theory:
The amount of state taxes paid at closing can be refunded to you as a tax credit and you get a check for the refunded amount. Now I know someone who has done this with success and I saw the check. I am trying to figure out the logic behind why a state would collect the tax, then refund it if filed for. Is this only applicable to NY?

Any help is appreciated

 

[FlyingRon]

I'm not familiar with NY (I've been a property owner in NJ, MD, VA, and NC).
If there is an outright CREDIT for some taxes paid at closing in NY, that would be a unique feature to NY. You should consult a tax professional there. Usually, all you get to do is take a deduction. Taxes at closing typically are just treated like any other taxes paid, they may be taken as itemized deductions.

 

[dbradshaw]

Thanks FlyingRon!!

Are there any NY tax gurus around that may be able to shed some knowledge and light on this question?