Real Estate Tax Update

On December 27th, the IRS issued an advisory regarding the deductibility of real estate property taxes in light of the new tax law. The “Tax Cuts and Jobs Act” caps the 2018 property and state tax deduction at $10,000 for those who itemize their deductions. According to the IRS, the property taxes must be assessed and paid before 2018 in order to claim the deduction in 2017. “A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017”.

The IRS news release, with helpful examples, is provided here. To learn more or to discuss, please contact us.