Prepaying taxes
- Thread starter murph1
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Zippo1
Bronze Member
It seems like the question of whether doing so will be allowed or result in a deduction is still on the table:
Here is what you need to know about whether you can deduct prepaid property taxes under new tax bill - The Washington Post
Dutch445
Elite Member
i did mine today, along with January's mortgage payment,
gives me some extra stuff to itemize for 2017 taxes that i won't need
in 2018 with the $24K standard deduction..
looking at the changes, with the larger standard deduction,
and the loss of personal exemptions, i'll wash about even.
there was quite a few people in my local town office in line to
pay today, they were closed tues/wed of this week for Christmas.
gives me some extra stuff to itemize for 2017 taxes that i won't need
in 2018 with the $24K standard deduction..
looking at the changes, with the larger standard deduction,
and the loss of personal exemptions, i'll wash about even.
there was quite a few people in my local town office in line to
pay today, they were closed tues/wed of this week for Christmas.
Steppenwolfe
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Pay now... pay later. The IRS is still gonna bone you, it's what they do...
MossRoad
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With our property taxes at less than $600 per year, and us NEVER ever being able to beat the standard deduction after itemizing for 32 years, it doesn't concern me in our situation. I'm always amazed at the complexity of others' taxes. I know there are reasons like business, health catastrophies, high tax areas, etc... just never applied to us or anyone in our immediate families.
dasranger
Bronze Member
My wife makes charitable contributions to an organization on a monthly basis. I told her to write a check now to cover 2018. For us, our total charitable contributions will be about 50 percent less next year. Our trips to Goodwill will be less and not require a receipt from now on.
teejk
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The IRS made an announcement yesterday on this very topic. It clarifies that the taxes must be paid in 2017 AND "assessed" (estimates are not allowed...you need the bill). That "assessment" thing varies by jurisdiction. I paid 1/2 of mine today (would have been due January 31 anyway). Paying the whole thing didn't make much of a difference and would have resulted in the loss of a Wisconsin tax credit.
nybirdman
Super Member
Just paid mine per advise from my CPA.I had to call the county to get the exact amount.Don't know if it will matter in my situation but they had to be paid by Jan.31 any-way.I have a small business so it may help me.
plowhog
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I paid numerous property taxes early. Fortunately I had a bill in hand for each-- even though the next installment(s) were not due until 2018. One of my pet peeves is that property taxes in various counties and states do not have uniform due dates. But I guess I should be glad to have that problem! :laughing:
btw, the IRS announcement was only an "advisory," not a ruling. So like many things, you do what is best and things will unfold to where you learned if it was a good thing to do or not. Things could change in the future. But I think you are pretty safe pre-paying taxes if you already have a (future) bill in hand.
btw, the IRS announcement was only an "advisory," not a ruling. So like many things, you do what is best and things will unfold to where you learned if it was a good thing to do or not. Things could change in the future. But I think you are pretty safe pre-paying taxes if you already have a (future) bill in hand.
