Hi, all:
I know that this is a frequent topic of conversation right now, but hoping to get some insight since I'm getting advice from my accountant I'm unsure of.
We currently live in HCOL area (Bay Area, CA) with high property taxes (around 15,000). We are in a position where we could pay all or some of next year's property taxes now, but our accountant is suggesting we don't because AMT would kick in (our pre-tax income is right around 265,000). Is this advice correct? For some reason, I was thinking AMT for individuals might be eliminated, but of course everything is up for grabs right now.
To add to the complexity, we have a MIL apartment in our house that we rent out. We cannot deduct any of our current expenses due to income cap, but are filing schedules each year, with the plan to put those deferred expenses against the capital gains we'd owe when we sell on the part of the house that is a rental (approximately 850 feet of our 2300 square foot house). If we pay the property taxes now, will that impact our ability to make similar deductions next year? (Our income should be about the same, plus or minus 10,000 or so). And given that it is deferred, does it matter?
