Prepayment of property taxes in 2017

fasttimes

Since there is a 10k cap with the (shameful IMO) tax plan, starting in 2018 you are are limited to 10k deductions for all SALT and property taxes.

Many jurisdictions are allowing pre-payment for property taxes (the plan prohibits SALT prepayment for itemizing), though it remains to be see if the IRS will allow you to actually reduce your AGI for 2017 for the property taxes. I plan on walking down to my treasurers office next Wednesday and cutting a big effin check. The question I have, and haven’t seen asked anywhere else is do you think this will fly for multiple years? I’m in the process of grabbing some scratch together to cover 18-19, but was considering putting in 20 as well.

Has anyone seen anything about multiple years? The IRS is woefully understaffed, so I think the odds are likely one could get away with this. AFAIK it’s not illegal, primarily because the new law doesn’t say you can’t do this.

Thoughts?

booksleuth

In Town in NY state, can only prepay: Town/County/FD tax. The warrant for school taxes is in September and cannot be prepaid. So I prepaid 36% of the Yearly taxes. Too bad this only works for one year. Town will not accept payment for more than amount due in January 2018. School taxes cannot be prepaid at all.

Almighty1

And this is what the IRS said yesterday…

https://www.washingtonpost.com/local/dc-politics/tax-bill-spawns-new-holiday-ritual-waiting-in-line-to-pay-taxes/2017/12/27/1e7ea59a-eb12-11e7-b698-91d4e35920a3_story.html?utm_medium=email&utm_source=digg&utm_term=.097f0b6b66ec

atikovi

For all the Trump haters that say his policies just help the rich, isn’t this a positive thing? I mean, if your property tax is over $10K, you’re in a million dollar house. Not being able to deduct anything over $10K is a drop in the bucket for those people in most cases. Lets eliminate the mortgage interest deduction and then you will see the fur fly.

dangeRuss

@atikovi said in Prepayment of property taxes in 2017:

For all the Trump haters that say his policies just help the rich, isn’t this a positive thing? I mean, if your property tax is over $10K, you’re in a million dollar house. Not being able to deduct anything over $10K is a drop in the bucket for those people in most cases. Lets eliminate the mortgage interest deduction and then you will see the fur fly.

My house is a lot less than $1M and my property tax is over 10k. Some places just have higher taxes than others.

atikovi

Where? NJ?

my4mainecoons

@atikovi The Tax Foundation found that homeowners in these states paid the most in property taxes:

New Jersey - 2.38 percent
Illinois - 2.32 percent
New Hampshire - 2.15 percent
Connecticut - 1.98 percent
Wisconsin - 1.96 percent
Texas - 1.90 percent
Nebraska - 1.84 percent
Michigan - 1.78 percent
Vermont - 1.71 percent
Rhode Island - 1.67 percent

If your tax rate is ~2% you’ll pay $10k in property tax on a $500k home-- so half a million not a million dollar house.

booksleuth

As a old time Real Property Assessor we figured 2-2.5 % per year for taxes. I pay just under 13K in NY State on a 508,000 house. YMMV