Re: pre-paying 2018 taxes

Posted by SOS on 2017/12/28 17:57:08
Quote:

jerseymom wrote:
By Terrence T. McDonald tmcdonald@jjournal.com
The Jersey Journal

"The IRS has dashed the hopes of New Jersey homeowners who have prepaid their 2018 property taxes in an effort to get around a provision in the new federal tax overhaul."

In a statement it released Wednesday, the IRS says prepayment of property taxes not assessed prior to 2018 are not deductible when filers submit their tax returns next year. The federal agency had previously said it was still reviewing language in the law to determine if it would permit deduction of prepaid local taxes.

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the IRS says prepayment of property taxes not assessed prior to 2018 are not deductible when filers submit their tax returns next year.

Replace the word "assessed" with "billed." The first two quarters for 2018 have been billed. The 3rd and 4th is open to interpretation.

Your pre-paid property tax questions answered
by Katie Lobosco @KatieLobosco
December 28, 2017: 4:03 PM ET

Can I pre-pay my entire 2018 property tax bill and deduct it from my 2017 taxes?

The short answer is, probably not. But you might be able to pre-pay a portion of your 2018 taxes and write those off on your 2017 tax return to be filed before April.
It depends on whether your local tax authority has previously assessed what your tax bill would be in 2018, according to IRS guidance issued late Wednesday afternoon.
"Estimating your property tax liability isn't enough. The property tax must be billed too," wrote an economist at the Tax Foundation.

http://money.cnn.com/2017/12/28/pf/pr ... tax-deductible/index.html

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