Is property tax credit considered income?

[Chad Whitman]

I purchased a duplex in 2019. As part of the closing, I received a property tax credit of $3,000 from the seller for the time they owned the property in 2019. Should that be considered income?

[Eamonn McElroy]

No, not income.

Would have to see the settlement statement and county property tax statement to be sure, but generally it is a reduction in your property tax expense for the applicable tax year as that is the seller's prorated portion of property taxes for the portion of the year he/she owned the property.

It's generally a current liability that hangs out on your balance sheet until the next property tax payment cycle.