Thursday, December 28, 2017

FYI: Prepaying Property Tax

Some faculty and readers of this blog will be aware that starting in tax year 2018, there is a $10,000 cap on federal deductions for property and state income tax, due to the new tax legislation. That provision tends to disadvantage Californians with high property values and state income tax. Thus, there has been an interest in prepaying the second installment of the current property tax liability before Dec. 31, rather than waiting until April next year.

Yours truly is not a tax expert, lawyer, etc. So here below is a link to the latest IRS pronouncement on the subject. Consult your tax expert regarding your situation. (And don't blame yours truly for the consequences.)

The IRS advisory is at the link below:

IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017 (IR-2017-210, Dec. 27, 2017):

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