reminder if you will owe local taxes

[Airborneguy]

Originally Posted by mathjak107

there is always a way to do something . most don't have the motivation and drive to make things happen .they just float to wherever life lands them . usually from one low paying job or dead end job to another .

Yup, and do that for too many years early on in life and you will never enjoy the benefits of the most powerful force in the universe: compounding interest!

[mathjak107]

that is very very true .

i know so many who pinch pennies and spend so much time clipping coupons or running all over town to save a few pennies . but what they don't understand is while a penny saved is a penny earned -without compounding in real return , it will always stay a penny .

they never learn or want to grow those pennies and so at the end all that saving left them so far behind where they could have been . had they not bothered pinching all those pennies but just learned to invest whatever they could round up better , or buy by that home or apartment they would end up far better off.

but , that is their problem .

[l1995]

Originally Posted by Moving415

Per the NYT (I just zapped a note to my tax preparer, too, just to see what he says): NYT: "NEW PLAN Taxpayers may deduct only up to $10,000 total, which may include any combination of state and local taxes, including property taxes (also sales taxes). But don’t try to prepay your state and local income taxes before year-end to circumvent the new limit. The proposal is one step ahead of you and your accountant and won’t allow it."

In any case, MathJak, I appreciate your post, as I'm sure others will too.

My local receiver of taxes recommended doing just that, I should do more research to see what the truth really is

[mathjak107]

i think a lot of people split there real estate taxes in to 2 payments with the 2nd half actually due early january but for 2017 . normally it counts as payments for 2018 income tax deductions . i know quite a few who accelrated that 1/2 in to december

[bluedog2]

Originally Posted by l1995

My local receiver of taxes recommended doing just that, I should do more research to see what the truth really is

I read something about this last night. It said that some places do permit pre payments of local taxes and some do not permit it. It then said that if you live in a municipality that permits and accepts prepayment of local taxes
it would be perfectly legal and smart to do do before Dec 31. It then cited New York City as a municipality that does permit and accept prepayments.

Evidently the bill prohibits prepayment of 2018 local income taxes that would accrue in 2018 but allows for prepayment of local property taxes and any state and local income taxes that will be due from this year. It did not mention whether we might be allowed to prepay mortgage interest . I know my mortgage bank allows me to prepay any amount I want and to designate whether the payment is to be applied to principal or interest but don't know whether I can legally deduct it for this year if I make a full years interest payment now. Going to find out about this later today.

Many of these payments...like NYC property taxes, mortgage interest, etc can be done electronically so it's not that difficult.

The article further suggested that if able to, people should double up on charitable donations before the end of the year and then maybe make less or no donations in 2018.

Accountants will be as busy all next week as they normally are in early April ! As usual only people with money will be able to take advantage of all the prepayment of deductibles and donations. Those without the cash available to do all of these things get screwed once again.