Pre-Pay Property Taxes in 2017....Not So Fast (claim, expensive, advantage)
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Many Americans have rushed to prepay their 2018 property taxes and save on their federal taxes, hoping to take advantage of a tax deduction that will be scaled back in the new tax law passed by Republicans last week. The Internal Revenue Service confirmed Wednesday that taxpayers will be able to take advantage of the maneuver — but only under limited circumstances.
The IRS said that taxpayers can claim an additional property tax deduction when paying their 2017 taxes if they pay the tax this year and if the local tax authority has notified homeowners prior to 2018 of how much they owe in property taxes, known as a tax assessment. State and local laws vary as to when this occurs.
For individuals who rushed to prepay their property taxes based on estimates about how much they’d owe, the decision could prove a frustration as it may be difficult to cancel those payments. Local tax officials in affected localities will now be forced to interpret the decision for their residents.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Yes, and some, like our county, have already said that they will return any checks sent before the bills come out, in late January. There is actually a law that prohibits paying money for tax not yet billed.
What does that have to do with "rushing laws through Congress?" People shouldn't have tried to pre-pay thinking that they'd be under the old tax system if they did so without actually having read the new law.
And now that we're on the subject, this is a very good change IMO. We shouldn't be subsidizing expensive (mainly leftist) jurisdictions that don't know how to keep a budget under control/implement extremely high property taxes as a way to make ends meet.
What does that have to do with "rushing laws through Congress?" People shouldn't have tried to pre-pay thinking that they'd be under the old tax system if they did so without actually having read the new law.
And now that we're on the subject, this is a very good change IMO. We shouldn't be subsidizing expensive (mainly leftist) jurisdictions that don't know how to keep a budget under control/implement extremely high property taxes as a way to make ends meet.
The GOP did a terrible job of explaining what the changes were. This was because they wrote the bill in secrecy with no hearings and disregarding technical evidence only to please their financial sponsors. The result is a very confusing and complex law that not even the IRS fully understands how all the pieces interact together.
The GOP did a terrible job of explaining what the changes were. This was because they wrote the bill in secrecy with no hearings and disregarding technical evidence only to please their financial sponsors. The result is a very confusing and complex law that not even the IRS fully understands how all the pieces interact together.
It simply shows the incompetence of the GOP to lead. Their staffs are weak, they have no experience in getting things done. All the did from 2008-2016 was obfuscate any legislation put forth.
It's crap like this that reminds me of the old saying, All politics IS local.
My guess is that this issue is the first of many to be uncovered as this rushed law takes effect.
The GOP did a terrible job of explaining what the changes were. This was because they wrote the bill in secrecy with no hearings and disregarding technical evidence only to please their financial sponsors. The result is a very confusing and complex law that not even the IRS fully understands how all the pieces interact together.
If you truly believe this, you don't go foolishly repaying taxes without knowing the exact terms of the tax bill, especially when you'd still have time to review before the year ends (indeed, the final version of the bill has been available for a little while now). That's reckless, especially when we are talking about substantial sums of money.
This has nothing to do with the law itself. I can't understand how anyone can be confused by a simple thing like assessed taxes. What the heck is confusing people about this "Tax 101" item?
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