IRS Cautions Taxpayers Prepaying Property Taxes - NBC 10 Philadelphia
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IRS Cautions Taxpayers Prepaying Property Taxes

The IRS says taxes can be prepaid and deducted from federal returns if local authorities levy the taxes in 2017 and they are paid by Dec. 31

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    NEWSLETTERS

    NJ Homeowners Considering Prepaying Property Taxes

    The newly-passed tax overhaul in Washington has some homeowners considering paying their taxes in advance. Brian Thompson reports.

    (Published Friday, Dec. 22, 2017)

    The U.S. Internal Revenue Service issued a notice Wednesday warning homeowners who are rushing to prepay their 2018 property taxes that their payment may not be tax deductible, NBC News reported. 

    A law signed by President Donald Trump, which goes into effect next year, will impose a $10,000 combined limit on the deduction of state and local income property taxes. While there is no limit on that deduction for 2017, a full deduction for the prepayment of state or local property taxes depends on whether the taxpayer makes the payment this year and whether the property taxes are assessed prior to 2018.

    "A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017," the IRS notice said.

    "State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed," it said.

    Trump Signs GOP's $1.5T Tax Overhaul to Law

    [NATL] Trump Signs GOP's $1.5T Tax Overhaul to Law

    President Donald Trump touted the size of the tax cut, declaring to reporters in the Oval Office before he signed it Friday, Dec. 22, that "the numbers will speak."

    (Published Friday, Dec. 22, 2017)