Welcome Guest. Register Now!  


Homeowner Tax Home owner tax issues and rebates.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-21-2018, 01:07 AM
Junior Member
 
Join Date: Mar 2015
Posts: 10
Can I deduct my 2018 prepaid property tax with 2017 tax return

I have paid the year 2018 property tax in Dec 2017. Can I claim both years 2017 and 2018 property taxes with 2017 federal and state tax return?

As per IRS advisory Dec 27th, 2017 "Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017"

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

I live in Minnesota. I am not sure when 2018 property taxes were accessed or whether I received the year 2018 bill notice from the county in December 2017. But I have paid 2018 property taxes in Dec 2017 and also accepted by the county.

Below is the notice/display on the county website.

"If you pre-paid your 2018 property taxes
2018 property taxes are based upon the January 2, 2017 assessment and the 2018 property tax levies that were certified to the County Auditor on December 25, 2017. For further information about how this may affect federal tax deductions, please consult with a certified tax advisor."

Does the above county notice indicate that 2018 property taxes were accessed on December 25th, 2017 and I can use both yearly (2017 and 2018 ) property tax payments on my itemized deduction line item on Federal and state taxes?

Attached Images
File Type: jpg Pre-paid_Taxes.jpg (151 Bytes, 3 views)


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-21-2018, 01:56 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
I have paid the year 2018 property tax in Dec 2017. Can I claim both years 2017 and 2018 property taxes with 2017 federal and state tax return? ========>As you can see mos t o f TPs are cash method users so aslongas you paid your 2018 pty tax in 2017 you my claim it on your Sch A of 1040 on your 2017 return also you may claim it on your 2017 state return too.

As per IRS advisory Dec 27th, 2017 "Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017"

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

I live in Minnesota. I am not sure when 2018 property taxes were accessed or whether I received the year 2018 bill notice from the county in December 2017. But I have paid 2018 property taxes in Dec 2017 and also accepted by the county. ========>>>>as said, An expense you pay in advance is deductible only in the year to which it applies The cash basis method is, in simplest terms, an accounting method in which tax reporting depends on when money changes hands. Expenses are recognized when they are paid, not when they are incurred

Below is the notice/display on the county website.

"If you pre-paid your 2018 property taxes
2018 property taxes are based upon the January 2, 2017 assessment and the 2018 property tax levies that were certified to the County Auditor on December 25, 2017. For further information about how this may affect federal tax deductions, please consult with a certified tax advisor."

Does the above county notice indicate that 2018 property taxes were accessed on December 25th, 2017 and I can use both yearly (2017 and 2018 ) property tax payments on my itemized deduction line item on Federal and state taxes?=========>as mentioned above



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-21-2018, 04:26 AM
Junior Member
 
Join Date: Mar 2015
Posts: 10
Quote:
Originally Posted by purilokesh View Post
I have paid the year 2018 property tax in Dec 2017. Can I claim both years 2017 and 2018 property taxes with 2017 federal and state tax return?

As per IRS advisory Dec 27th, 2017 "Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017"

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

I live in Minnesota. I am not sure when 2018 property taxes were accessed or whether I received the year 2018 bill notice from the county in December 2017. But I have paid 2018 property taxes in Dec 2017 and also accepted by the county.

Below is the notice/display on the county website.

"If you pre-paid your 2018 property taxes
2018 property taxes are based upon the January 2, 2017 assessment and the 2018 property tax levies that were certified to the County Auditor on December 25, 2017. For further information about how this may affect federal tax deductions, please consult with a certified tax advisor."

Does the above county notice indicate that 2018 property taxes were accessed on December 25th, 2017 and I can use both yearly (2017 and 2018 ) property tax payments on my itemized deduction line item on Federal and state taxes?
Thanks for your reply. Do I need to attach any document that my county accessed the year 2018 taxes in 2017?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 03-21-2018, 10:10 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by purilokesh View Post
Thanks for your reply. Do I need to attach any document that my county accessed the year 2018 taxes in 2017?
Not necessarily however, you need to keep them as evidences.so You don't send any documents / paperwork to the IRS/ your state dept of revenue, all you need to do is submit your tax returns showing the figures from the records that you kep.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax Year End Affected by 2018 or 2017 wanderson11 C-Corporation 2 02-28-2018 09:46 PM
AirBnB Rental in 1/2 of property. What can I deduct? jrobto Rental Real-Estate 3 02-17-2018 03:40 PM
Moving funds from 529 to FL prepaid Chunk1971 Miscellaneous 1 01-25-2018 06:12 AM
deduct interest rental property Trammel Limited Liability Company 1 07-03-2017 04:54 AM
Can a LLC equity partner in an investment/rental property deduct travel to inspect/maintain property? StageFourLLC Rental Real-Estate 0 03-12-2014 09:06 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.