Are you prepaying real-estate taxes this year?
Are you prepaying real-estate taxes this year?
Just read this article
https://chicago.suntimes.com/chicago-po ... tax-bills/
Pending legislation itself should not be discussed per forum rules, but let me ask you a practical and very actionable question with potential to save thousands of dollars: are you pre-paying next year property taxes this year? Why or why not?
Not sure why the article talks about pre-paying 1st installment only. It seems, if one made a decision to pre-pay and has means to do so, the whole year tax would be twice as beneficial...
https://chicago.suntimes.com/chicago-po ... tax-bills/
Pending legislation itself should not be discussed per forum rules, but let me ask you a practical and very actionable question with potential to save thousands of dollars: are you pre-paying next year property taxes this year? Why or why not?
Not sure why the article talks about pre-paying 1st installment only. It seems, if one made a decision to pre-pay and has means to do so, the whole year tax would be twice as beneficial...
Re: Are you prepaying real-estate taxes this year?
No. We bunched our deductions last year, so 2017 is a standard deduction year for us. Paying 2018 taxes in late Dec 2017 would do us no good.
Re: Are you prepaying real-estate taxes this year?
I think it's being discussed in various topics already.
It depends. How much of the actual tax dollars would you save? Do you have any AMT limitation? Everyone's tax situation is different.
It depends. How much of the actual tax dollars would you save? Do you have any AMT limitation? Everyone's tax situation is different.
Time is the ultimate currency.
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Re: Are you prepaying real-estate taxes this year?
Is there something the 200+ posts in this ongoing thread left out of the discussion?
Re: Are you prepaying real-estate taxes this year?
My county won't take the money. I am blasting another remnant stock into my DAF though.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: Are you prepaying real-estate taxes this year?
I asked my accountant about this and he said it wouldn't help because we are subject to AMT. Did anyone else get this response?
- Artsdoctor
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Re: Are you prepaying real-estate taxes this year?
Yes. State income tax and real estate tax are not figured in calculating your AMT. Depending on your state, you may reduce your state income tax by paying your real estate tax forward.
Re: Are you prepaying real-estate taxes this year?
I'm prepaying for the first time, but it is because my marginal tax rate will probably be lower next year than it is this year.
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Re: Are you prepaying real-estate taxes this year?
I will prepay because I retired in July. My income this year will be higher than next year.
Re: Are you prepaying real-estate taxes this year?
I just did for the first time. I got a large severance this year and was looking for ways to reduce the taxes I have to pay on it. I have no idea if I'm going to run into AMT or not. I figure I'll cross that bridge when I get to it.
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Re: Are you prepaying real-estate taxes this year?
I did last year. I paid $0 tax last year for a change, fell really good. This year I will prepay so my Roth conversion will be in 10% bracket. Get ready to be in 12% bracket next year.
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Re: Are you prepaying real-estate taxes this year?
Can you link me to the other thread? I’m getting AMT again this year but won’t have AMT next year. Debating what to do with my property tax.NotWhoYouThink wrote: ↑Fri Dec 15, 2017 5:04 pm Is there something the 200+ posts in this ongoing thread left out of the discussion?
Re: Are you prepaying real-estate taxes this year?
If you are already subject to AMT, then a higher deduction for property taxes won't impact the bottom line tax bill.
In my case, I am accelerating two deductions because I don't believe I will benefit from them in the future. First, I am paying my property taxes in December 2017. Second, I am making a relatively large charitable donation (of highly appreciated stock) to my Donor Advised Fund in 2017.
The donation deduction serves to take me out of AMT, and thus the higher property tax deduction will indeed benefit me in 2017. I know this won't be true for some, but it might be worth considering. Especially since accelerating deductions - for property tax and donations - makes sense for people who don't believe they will benefit from those deductions in future years.
Best wishes.
Andy
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Re: Are you prepaying real-estate taxes this year?
Yes. Every other year I bundle my real estate tax payments because I no longer have enough deductions to itemize every year.
Re: Are you prepaying real-estate taxes this year?
I've had enough deductions to itemize every year, but have still bundled every other year since on the average I save hundreds. This year I will itemize. It's looking like, going forward, I may never itemize again.Colorado13 wrote: ↑Sat Dec 16, 2017 5:05 pm Yes. Every other year I bundle my real estate tax payments because I no longer have enough deductions to itemize every year.
Re: Are you prepaying real-estate taxes this year?
I don't think so. There are 276 posts in this locked thread: Prepayment of SALT Taxes? [State and Local]NotWhoYouThink wrote: ↑Fri Dec 15, 2017 5:04 pm Is there something the 200+ posts in this ongoing thread left out of the discussion?
AMT (Alternative Minimum Tax) is part of the proposed tax reform.
This thread has run its course and is locked. See: Political comments and proposed tax plan remain off-topic. The last post is by the site owner, Alex Frakt.