News Regarding Tax Deductions
News Regarding Tax Deductions
Changes to know for 2018, and beyond.
The IRS issues new guidelines regarding the deductions for tax prepayments.
The new guidelines from the IRS announce news regarding tax deductions happened in late 2017. The changes start with the 2018 taxes deductions. They are still in effect this year. The important thing to know relates to property taxes in escrow. Property taxes in escrow until the October tax bill is complete are no longer deductible.
The Austin American Statesman article about this:
IRS’s statement dampens Austin-area rush to prepay property taxes
The IRS provides more information and example:
Summarized from the IRS website
“In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.”
IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017
Do you have questions about your federal income taxes?
Texas Protax recommends contacting your CPA about your federal income tax.
Continue to check our site for more news regarding tax deductions.
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For more information:
Texas Protax FAQ
TEXAS.GOV – Comptroller Resources for Taxpayers PROPERTY TAX SYSTEM BASICS
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