How do I pay my income tax balance?
Can the court determine who claims the child??
I am so glad the IRS addressed this issue in their frequently ask questions….https://t.co/BeqUC7L04J
— S. Davis Tax Consultants (@SDAVISTAX) January 3, 2018
To Prepay or Not to Prepay Property Taxes
If you recall, I sent an email on Christmas Eve regarding strategies when ‘planning’ for 2018 tax law changes.
Prepayment of state and local income taxes were specifically addressed and not allowed by Congress. However, treatment for prepayment of state and local property taxes were not specified.
This has been a major source of discussion among tax professionals.
The IRS has finally issued guidance (and examples) on December 27, 2017, see IR-2017-210.
In short, if your state and local officials have ASSESSED the 2018 real property tax prior to the end of 2017 AND that tax has been paid by the end of 2017 – then the ‘prepayment’ is deductible.
If not, prepayment of any tax not yet assessed will not be deductible on your 2017 Individual Income Tax Return.
See What Massachusetts says about Prepayment of Property Taxes – click here.
** Individuals (including Married Couples) subject to AMT (Alternative Minimum Tax) will not receive benefit from prepayment of property taxes.**
Contact your tax professional to see if your ‘prepayment‘ will qualify for 2017 itemized deduction (before the limits kick in).
Shanikwa Davis CPA EA 