I have heard that the new tax law (assuming it becomes law) does not allow prepaying future real estate taxes in 2017 in order to get an additional deduction since beginning in 2018 there is a $10,000 cap. Is that correct?
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It says State and Local Income tax can not be prepaid to count as a 2017 deduction, but it does not mention Real Estate taxes.
Here is the legal gibberish for that:
"For purposes of subparagraph (B), an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, shall be treated as paid on the last day of the taxable year for which such tax is so imposed.’’
It says State and Local Income tax can not be prepaid to count as a 2017 deduction, but it does not mention Real Estate taxes.
Here is the legal gibberish for that:
"For purposes of subparagraph (B), an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, shall be treated as paid on the last day of the taxable year for which such tax is so imposed.’’
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