Property Tax Question

[ny96]

We are in the middle of refinancing and found out that we have a delinquent property tax bill (I misread the payment date and this is a fairly new property). Our mortgage broker is telling us to wait and pay it at the closing next week, but I’m worried that we will miss out on tax benefits for 2019 if we do this. We have paid $6500 in property taxes so far for 2019 and are scheduled to pay an annual tax bill of about $13,000 meaning if we made the delinquent payment in 2020 we will have paid $20,000 in property taxes. What should we do?

[goldengirlz]

You’re in California, right?

I doubt you need to worry about maximizing tax benefits. Thanks to tax reform (/sarcasm) you’ll cap out at $10k for SALT, including property tax, and I’m guessing you’re already wayyy over that threshold with state income tax alone.

[ny96]

Dec 30, 2019 21:48:30 GMT -5 goldengirlz said:

You’re in California, right?

I doubt you need to worry about maximizing tax benefits. Thanks to tax reform (/sarcasm) you’ll cap out at $10k for SALT, including property tax, and I’m guessing you’re already wayyy over that threshold with state income tax alone.

Yes, we’re in California. Thanks, I didn’t realize that SALT also included state income tax. I’m just so frustrated with myself because now we also owe a 10% penalty, and on top of this I realized today that I double booked 3 days of winter break camp and neither camp is offering a refund so I’m stuck transferring the days to other school free days this winter when I don’t need childcare.

[goldengirlz]

Dec 31, 2019 1:12:32 GMT -5 ny96 said:

Dec 30, 2019 21:48:30 GMT -5 goldengirlz said:

You’re in California, right?

I doubt you need to worry about maximizing tax benefits. Thanks to tax reform (/sarcasm) you’ll cap out at $10k for SALT, including property tax, and I’m guessing you’re already wayyy over that threshold with state income tax alone.

Yes, we’re in California. Thanks, I didn’t realize that SALT also included state income tax. I’m just so frustrated with myself because now we also owe a 10% penalty, and on top of this I realized today that I double booked 3 days of winter break camp and neither camp is offering a refund so I’m stuck transferring the days to other school free days this winter when I don’t need childcare.

I’m sorry, that sucks. At least the camp days should be tax deductible? I know it’s small consolation.