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Old 12-31-2008, 04:37 PM
 
2,269 posts, read 7,334,442 times
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Quote:
Originally Posted by Trainwreck20 View Post
If you do not pay by Dec 31, though, you cannot deduct the property tax from yout 2008 federal income taxes...you have to wait until the following year .
Yeah, I realized that and paid them today. Thanks for the reminder though. I've always done escrow before but I don't have a mortgage anymore (good thing!!) so I was on my own paying the BIG bill.
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Old 12-31-2008, 04:43 PM
 
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My escrow paid it and actually my home is new construction. I was fully assessed at closing, then my value dropped for partial year build so I got a hefty refund from escrow. This was a good year for me.
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Old 01-01-2009, 08:54 PM
 
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Quote:
Originally Posted by chauncy View Post
True. Also, DH's strategy is to pay taxes 2x in 1 year, for greater deduction (1/31 and 12/31). I am not sure if this makes sense, but he feels clever doing this....

Edited to add, obviously we do this every other year.
It makes sense if you don't have a mortgage and assuming the stable income from one year to another. Then using itemized deductions method one year to claim your property taxes/other expences and using the standard deductions the next year.
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Old 01-02-2009, 07:40 AM
 
Location: Folsom, CA
543 posts, read 1,741,382 times
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Quote:
Originally Posted by chauncy View Post
True. Also, DH's strategy is to pay taxes 2x in 1 year, for greater deduction (1/31 and 12/31). I am not sure if this makes sense, but he feels clever doing this....
We are doing a modified version of this. As retirees who own our home free and clear, we don't usually itemize. This year our tax bill is about 7K. We paid one thousand towards the debt in December. This allows us to take a special deduction of one thousand for 2008 even without itemizing. We will pay the remaining 6K next week and then 7K (assuming a similar tax obligation) in December for 2009 tax bill allowing us to take best advantage of itemizing next year.

http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6395.html (broken link)

Last edited by sanmiguel; 01-02-2009 at 07:50 AM..
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