Can I deduct only some of the property tax actually paid to avoid AMT?
I prepaid 1/2 of my 2018 property taxes. Deducting the full prepayment triggers the AMT. But if I deduct only some of the prepayment, the AMT goes away and I no longer owe AMT. It works out best if I only deduct a certain amount of the prepayment. Is OK to do this?
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1 Best answer
PatriciaV
Expert Alumni
Jun 4, 2019 12:59:09 PM
Yes, you have a choice to report pre-paid property taxes that were assessed and paid in 2017. However, the amount that you do not report on your 2017 Federal tax return will not be deductible next year.
1 Replies
PatriciaV
Expert Alumni
Jun 4, 2019 12:59:09 PM
Yes, you have a choice to report pre-paid property taxes that were assessed and paid in 2017. However, the amount that you do not report on your 2017 Federal tax return will not be deductible next year.