Your second property tax installment is now due!

 

Your second property tax installment is now due!

Not really, but you may consider paying your property taxes early. The new tax law limits deductions on state and local taxes to just $10,000. The law actually prohibits paying 2018 state and local taxes early to avoid the new tax rules, but it is not clear that the full property tax amount cannot be deducted in 2017 if paid in full. After all, property owners were sent the bill in Fall.

Homeowners get a bill that can be paid in two installments- first half due in December and the second half due in April- but one can choose to pay the full amount at once. If you are able to pay the second half of your bill before January, you may get the benefit of the full deduction against your 2017 taxes. Many local and national newspapers suggest it is a good idea to do so, but talk to your tax consultant or financial advisor to be sure this makes sense for you. You don’t necessarily want to increase credit card debt to avoid taxes, for instance.

This approach is not guaranteed to work; tax experts are debating this aspect of the law. But with very little time to decide, if it doesn’t create a hardship to pay the property tax by 12/31/17, then it might be a prudent thing to do. I did!

I will be posting further information about the real estate ramifications of the new tax law soon. Stay tuned!

Sincerely,
Rumana

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This post was written by Rumana Jabeen

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