The Republican tax plan signed by Donald Trump today places a $10,000 deduction cap on local property and state taxes starting in 2018. That’s leading to a lot of interest in prepaying 2018 property taxes before the end of 2017 and taking the deduction this year, potentially saving hundreds if not thousand of dollars.
And, yes, you can do that in Newton. This short message appeared today on the city’s website.
February and May 2018 Real Estate Taxes may be pre-paid online or at the Treasurer’s office in City Hall
I should add, there some speculation that paying early might be not allowed by the IRS so, you know, consult your financial adviser or tarot cards.
Note, if you prepay too much you could land into AMT which could prevent some of the deduction…
Any ideas on how to figure out if this is a benefit to you in the next week?You must be itemizing and not currently subject to the AMT; but within that group, how do you learn to if pre-paying would cause you to become subject to the AMT?
@Anne: You should check with a tax accountant!
I believe if you escrow your taxes with your mortgage company it would be very challenging to try to prepay
I was hoping for the buzzfeed news quiz (s.c. Answer these 10 questions to find out if prepayment is right for you!) before I spend/recommend others spending hours on hold trying to get through to accountants and/or lenders.
I, for one, have already hit my holiday season quota for “hours subjected to questionabe muzak.”