Major tax law changes in 2018 might make it prudent to prepay your property tax before the tax season.
If you normally take the itemized deduction on your taxes, those amounts change drastically beginning in 2018. So, if your itemized deductions are normally under $25,000, you may benefit from paying your property tax and donations before the end of 2017 to classify those expenses on your 2017 tax return.
Property owners can prepay their taxes before the year-end to maximize deductions. By making early payments, taxpayers can benefit from current tax rates & potentially lower their overall tax liability.
Review Your Tax Strategy Before Making an Early Payment
Before prepaying property taxes, it is important to review your complete tax situation rather than making an early payment based solely on potential deductions. Changes in tax laws can affect how property taxes, charitable contributions, and other itemized deductions impact your return. A qualified tax professional can help you evaluate your income, deductions, filing status, and other factors before deciding whether prepayment makes sense. Working with a trusted provider of tax planning and accounting services can also help you identify potential tax-saving opportunities and make informed financial decisions. Proper planning can help you avoid unnecessary payments while maximizing available tax benefits.
Consult a tax professional today to determine if prepaying property tax benefits your financial situation.
