December 28, 2017

IRS Advice on Property Tax Prepayment Causes Confusion

Taxpayers across the United States are scrambling in the last days of 2017 to prepay some or all of their 2018 property taxes during the final days of 2017 because the tax bill Congress just passed sets a $10,000 limit on deductions for state and local property and income taxes combined.Taxpayers can only prepay 2018 property taxes that have already been billed — the IRS uses the words “assessed prior to 2018” — not taxes that they estimate themselves.

We came across this following article from Think Advisors that offers some advice. As always, please check with your own municipality before paying.

IRA Advice on Property Tax Prepayment: http://www.thinkadvisor.com/2017/12/28/irs-advice-on-property-tax-prepayment-causes-wides?slreturn=1514499723