I understand that for federal taxes I am capped at $10000 for salt. But let’s say my property tax is $11000 (I usually prepay feb 2019 in 2018 or whatever year prior as California allows this). I feel I should still do this so that I can deduct this full $11000 for my California state tax forms. If not, and I only pay half which is due in September 2018, I would only deduct $5500 from state, and I would lose out on a potential $550 reduction in state tax (assuming California is taxed at 9-10%). Has anyone thought about this issue? If you were me would you not prepay the February 2019 portion as I would only deduct it from state income tax forms (for federal I would add the $5500 plus my state income tax deduction to equal the max $10000).
posted
last updated
July 16, 2018
8:06 PM