Learning, Sharing, and Teaching > Taxes
$10,000 state deduction limit
Mighty-Dollar:
My understanding of this new Federal tax package that's about to be passed in Congress is that there will be a $10,000 cap on state and local taxes. I pay over $13,300 in property taxes (welcome to California!). My state taxes are about $650 per year. In total that's about 4K that I won't be able to deduct next year, right? I assume this tax package will apply to 2018 onward?
My question is whether some people are paying their 2nd installment of property taxes early this year? Seems to me I'll get more write-off bang for my property tax bucks this year. Next year much of that just goes to waste if I'm interpreting this correctly.
MDM:
Won't work if the property taxes are for 2018. See Republican Tax Plan 2017.
Livewell:
Nice FU from the republicans on that last minute change. We’ll remember that one!
A question though - we prepaid our second property tax early, which is part of our local county’s July-June FY17-18 and due by the middle of April. Can we still deduct that in 2017? Technically I could see it falling into 2017 taxes because there is no specific reason you can’t pay early during the county’s FY, but seems open to interpretation. Any CPA’s out there with a thought on this?
Mighty-Dollar:
--- Quote from: MDM on December 16, 2017, 01:30:21 AM ---Won't work if the property taxes are for 2018. See Republican Tax Plan 2017.
--- End quote ---
This raises yet another question. My property tax bill says "annual property tax bill" for "2017". More specifically it's for July 1, 2017 to June 30, 2018. The 2nd installment isn't due until 2/1/2018. The installment stub still says "Annual 2017".
http://www.timesunion.com/news/article/New-Yorkers-could-pay-2018-property-taxes-early-12431829.php
Debts_of_Despair:
The standard deduction is nearly doubling. Are you itemizing many other expenses?
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