We are contacting selected clients regarding a tax saving opportunity that is now available as a result of tax reform (Tax Cuts and Jobs Act) that was passed today.
You may benefit from prepaying your property taxes.
This legislation has limited the deductibility of property taxes for 2018 and beyond. In certain scenarios, it will be beneficial to pay your 2018 property tax bill before the end of 2017 and capture the deduction before it is lost.
The following must all be true to benefit on your 2017 tax return:
- Itemize deductions
- Pay Property tax
- Do not pay AMT tax
- Have the funds available to make a payment before the end of the year
Every county has different rules for prepaying your property taxes. For example, here are instructions for Kane County, Illinois: http://kanecountyconnects.com/2017/12/how-to-prepay-your-kane-county-property-tax-bill-and-potentially-save-money/
Please contact us if you would like us to analyze your specific situation to determine if prepaying your property taxes will be beneficial.