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New Member
posted Jun 4, 2019 7:47:12 PM

Paid 3 installments of property taxes in 2017 . Should I pay the Feb. 2018 property tax installment before the end of this year 2017?

California taxes and I do have the option to pay February 2018 in 2017.

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1 Best answer
Level 15
Jun 4, 2019 7:47:16 PM

If the total of your 2018 itemized deductions for real estate tax plus state income tax (or state sales tax) will be more than $10,000, you will probably benefit from paying the Feb. 2018 real estate tax installment in 2017. This is assuming that the February installment has already been billed. See the following notice on the IRS web site.

https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-a...

4 Replies
Level 15
Jun 4, 2019 7:47:14 PM

Sure. But why do you think you won't be able to deduct it, if paid in 2018? Is your property valued at more than $750,000? Perfectly feasible if you live in CA.

New Member
Jun 4, 2019 7:47:15 PM

heard the new tax bill will limit state taxes plus property taxes to 10,000 which we exceed

Level 15
Jun 4, 2019 7:47:16 PM

If the total of your 2018 itemized deductions for real estate tax plus state income tax (or state sales tax) will be more than $10,000, you will probably benefit from paying the Feb. 2018 real estate tax installment in 2017. This is assuming that the February installment has already been billed. See the following notice on the IRS web site.

https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-a...

Level 15
Jun 4, 2019 7:47:18 PM

The value of the property has nothing to do with the deduction for real estate tax. $750,000 is the maximum mortgage debt for which you can deduct mortgage interest in 2018.