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.
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.
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.
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.
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.