Post by mustardseed2007 on Dec 18, 2017 15:05:56 GMT -5
Do you pay your property taxes before year end? If not, are you going to this year?
I've been paying just after January 1, but last year was the first year our property taxes were over 10K (not by much but still) and this year they will be again...so I'm thinking about going ahead and paying this year's bill before the end of the year b/c of the new cap.
Is there any reason not to do this?
Is there anything else you're doing different yet in light of the new tax bill?
Our property taxes are due in October and they give you a discount for paying in full so mine are always paid in October. We also recommend our clients to try and pay in full in October.
I'm so tired of playing the what if game at work. We've have had a couple clients call us each week freaking out about something in the news. Our advice so far is to keep doing what you normally do. We've also pointed out that just because federal is changing things up doesn't mean that state is going to drastically change stuff so we still need all those itemized deductions for state.
Post by mustardseed2007 on Dec 18, 2017 22:44:13 GMT -5
Thanks. Our real property taxes are normally due 1/31. To take the deduction for this year I'd have to pay it by the end of december. I normally pay mine in the early part of January and then deduct it at the end of that year. I know a lot of people try to always pay it in december to get the deduction that same year but I just never have.
I think if I tried to maximize the property tax deduction by paying it early this year, I would then switch to paying them in december of each year so I would get to take a deduction next year too. It kind of doesn't matter, but sometimes it just makes budgeting easier b/c December already has so many expenses.
We don't have state income tax, so that's simple. I guess if they pass it before Christmas I'll still have a few days to make a decision.
If you pay AMT it won’t matter. If you don’t pay AMt then pay them before year end. All signs are pointing to a signed law by Christmas.
um....shakinros, looking at last year's taxes (which I did myself via turbotax) there is a (not very high) number next to alternative minimum tax. And there is an attached 6251. So that means I paid AMT, last year right? So that means it doesn't matter?
Groan....our local property tax bill just came on our upped assessment, which is about $8k, paring that with state taxes....I don't even want to look at it.
We paid ours early anyway because it will for sure be disallowed next year so it doesn’t hurt anything if you have the funds available.
Not all together right? Just capped at 10K? Mine are a little above 10K.
I actually got a raise this year and didn't adjust my withholding so I know I'm going to owe at the end no matter what, but will it do anything for me to go ahead and pay them if I'm going to pay the AMT?
Edit: I guess for me the only difference is that if I pay them in december this year, I'll really need to pay them in december next year and from there on out to make sure I get a deduction each year. That's all. There's not a huge difference b/c it's only one month but sometimes with other bills we have in december it seems like a lot. Then again, I have the money now.
We paid ours early anyway because it will for sure be disallowed next year so it doesn’t hurt anything if you have the funds available.
Not all together right? Just capped at 10K? Mine are a little above 10K.
I actually got a raise this year and didn't adjust my withholding so I know I'm going to owe at the end no matter what, but will it do anything for me to go ahead and pay them if I'm going to pay the AMT?
Edit: I guess for me the only difference is that if I pay them in december this year, I'll really need to pay them in december next year and from there on out to make sure I get a deduction each year. That's all. There's not a huge difference b/c it's only one month but sometimes with other bills we have in december it seems like a lot. Then again, I have the money now.
Not for us. We live in a high tax state and have high property taxes too. Together they will be limited to $10k next year. Currently we pay WAY above that. So the extra won’t do me any good next year.
Not all together right? Just capped at 10K? Mine are a little above 10K.
I actually got a raise this year and didn't adjust my withholding so I know I'm going to owe at the end no matter what, but will it do anything for me to go ahead and pay them if I'm going to pay the AMT?
Edit: I guess for me the only difference is that if I pay them in december this year, I'll really need to pay them in december next year and from there on out to make sure I get a deduction each year. That's all. There's not a huge difference b/c it's only one month but sometimes with other bills we have in december it seems like a lot. Then again, I have the money now.
Not for us. We live in a high tax state and have high property taxes too. Together they will be limited to $10k next year. Currently we pay WAY above that. So the extra won’t do me any good next year.
Ah yeah. No state income tax here. Go Texas. Yeehaw.