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Be Careful About Prepaying Your Property Tax

Posted by Admin Posted on Dec 28 2017

2018 Real Estate Taxes May Not Be Deductible as a 2017 Schedule A Itemized Deduction


The IRS issued a statement on 12/27/17 that said that 2018 real estate taxes that have not been assessed (you haven’t received a bill for them) are not deductible in 2017 (even if paid in 2017).  If you have received a bill for 2018 taxes then you should be able to deduct them in 2017 if you pay them in 2017.


The new $10,000 limit starting in 2018 on deducting state and local taxes applies to Schedule A itemized deductions only.  You can continue to deduct “business or rental” real estate taxes on Schedule C, E, F, etc.).