New Property Tax Deduction will apply or not 2017 tax year?(claim Apr, 2018)

Tax
1

Hi.

I am a newbie for tax as home owner.

New Property Tax Deduction($10,000) will apply 2017 tax year?(claim Apr, 2018)

My property tax is around 12,000. I already pay half $6000 in Nov. So if new property tax deduction will not apply on upcoming tax return, then I should pay before December and get tax return.

Thanks in advance! .

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2

no it will be for 2018 return, file 2019.

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3

Sounds like a idea to prepay

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4

Yup, you want to pay before the end of this year. You’ll get the full deduction for $12K on this year’s taxes. Next year, the cap is $10k and that includes state income and property tax combined. Odds are your state income tax is high enough you won’t be able to deduct any property tax.

5

Yes. Planning to do the same.

I have supplemental for the year before and this year regular bills.

6

Odds are your state income tax is high enough you won’t be able to deduct any property tax…

Could you explain about this?

7

I’ll be paying the second installment of my property taxes this year. After this year it is standard deduction forever.

8

Your total SALT (state and local tax deduction) is capped at $10K. If you pay $10K in state income tax, then you can’t deduct property tax.

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9

That sound too bad for me as a home owner…

10

There are a lot of other changes. It’s hard to tell if you’ll benefit or pay more. Most people here benefit and a few will pay slightly (<$1000) more.

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11

Apparently you didn’t read my situation, I need to pay over $10k more! because of the differences in computing earned income between Federal and California.

For identical treatment of earned income, I would be surprised there won’t be tax savings.

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12

How about rentals? Every expense including mortgage interests and property tax still can be deducted 100%, correct?

I need to set up a home-swap website.

13

Rental expenses are deducted against your rental income. I think only impact is if your expenses exceeded income, then you need to be a real estate professional.

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14

Now what if your house is owned by your parents/siblings and you just rent from them? :thinking:

15

No deduction for you!

16

He is just trying to chew his tongue by not admitting people like you “may” be hurt. :laughing:

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