Are pre-paid Denver City property taxes deductible? (income, property tax)

[WiW]

I'm sure most of you remember the rush to pre-pay property taxes at the end of 2017. Then, the IRS came out with a ruling

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

Which says

A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.

Denver's property tax site says

Taxes are billed in arrears; taxes assessed are due and payable January 1st of the following year. For example, 2017 taxes are assessed January 1, 2017, but are not due and payable until January 1, 2018.

So, I assume that if I prepaid (in Dec 2017) taxes that were billed and due in 2018, I can deduct the amount.



Any thoughts? Any tax experts on here?

[RJA29]

Originally Posted by WiW

I'm sure most of you remember the rush to pre-pay property taxes at the end of 2017. Then, the IRS came out with a ruling

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

Which says
Denver's property tax site says


So, I assume that if I prepaid (in Dec 2017) taxes that were billed and due in 2018, I can deduct the amount.



Any thoughts? Any tax experts on here?

You're likely at the whims of the IRS on this one - ask a CPA. However, the burden of proof falls on the filer, and they are required to show in the law where the reasoning would be if asked by the IRS.

Your quote says "...are not due and payable..." - the not payable might spark some confusion.

I filed in a similar situation, like I'm sure tens of thousands of others did. I'd say file and see what happens. They can decide not to accept the prepayment and amend your refund. - it's up to the IRS

[billiken]

I'm a CPA. Deductible, because of when the taxes are assessed in Colorado.

IRS says: A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.

In the case of CO, the property taxes ARE assessed prior to 2018 (per Denver website, they are assessed January 2017 for payment in 2018), and therefore can be deductible if you've prepaid.

[SkyDog77]

My CPA said they are.....if your adjusted gross income is under $313,000 so you qualify for itemized deductions.

[WiW]

Thank you all for your comments.