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


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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no it will be for 2018 return, file 2019.

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Sounds like a idea to prepay

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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.

Yes. Planning to do the same.

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

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

Could you explain about this?

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

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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That sound too bad for me as a home owner…

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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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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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.

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

No deduction for you!

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

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