New tax law

[inda50]

I have been hearing talk about pre paying real estate taxes for 2018 in 2017 in order to take advantage of the tax deduction now instead of possibly losing it under the new tax laws for 2018 that just got passed.

Does anyone know if this can be done in Fl.?

[Chatbrat]

pretty hard to have real estate taxes in excess of $10K in Fl-if your taxes are under $10K-don't sweat it

Also, its pretty hard or damn near impossible to itemize if you are really retired--enjoy

[villagetinker]

There were articles today indicating that the IRS is balking at these early payments, please do some research.

[Ralphy]

According to the IRS, the $10k max deduction of taxes does not start until tax year 2018.

[twopjt]

You can't do it per FL statute.

[Dr Winston O Boogie jr]

pretty hard to have real estate taxes in excess of $10K in Fl-if your taxes are under $10K-don't sweat it

Also, its pretty hard or damn near impossible to itemize if you are really retired--enjoy

If you own a home that's valued at $715,000 your taxes would be around $10,000. Anyone that owns a home valued above that would have to pay taxes on the amount over $10,000.

There are not very many homes in TV that are valued over $715,000.

[kansasr]

You won't get your 2018 tax bill until next November, so we're out of luck in Florida.

[Dan9871]

The $10,000 deduction only applies if you itemize. If you don't itemize you get a $24,000 standard deduction.

[Boomer]

For Villagers who still have that other home, up north, Florida RE taxes might not be the only question.

Here is a link to what NPR had to say:

Scrambling To Prepay 2018 Property Taxes? Maybe You Shouldn't : NPR (https://www.npr.org/2017/12/26/573628779/why-homeowners-are-scrambling-to-prepay-their-2018-property-taxes)

[Ralphy]

My previous post should have contained the following sentence.

In a statement Wednesday, the IRS said that in order for deductions to be allowed on taxes that are paid in 2017 ahead of the 2018 deadline, the taxes must be assessed before the end of 2017.

[rustyp]

The $10,000 deduction only applies if you itemize. If you don't itemize you get a $24,000 standard deduction.

$24000 married filing joint but you loose $8000 for the two personal exceptions. Thus it was $12000 standard deduction plus $8000 two personal exceptions for an income reduction of $20000 (2016 numbers). It will now be an income reduction of $24000 or a net increase in income reduction of $4000 not double like your favorite politician is trying to sell you.

[EPutnam1863]

My previous post should have contained the following sentence.

In a statement Wednesday, the IRS said that in order for deductions to be allowed on taxes that are paid in 2017 ahead of the 2018 deadline, the taxes must be assessed before the end of 2017.

In many of the places where we lived, pre-paying property taxes was not allowed because the exact amount was not yet assessed.

[pooh]

On the news.....

Property tax: Florida residents can’t prepay | WFTV | WFTV (http://www.wftv.com/news/local/florida-residents-cant-prepay-property-taxes-tax-collectors-say/670474443)