turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

unifax2
New Member

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

That's a question that's utterly impossible to answer with a "Yes" or "No" as it depends entirely on your own personal situation and nobody here has that information.  The fact that paying property taxes in January results in (potentially) 2 years worth of deductions in 2017, resulting in less income tax, also means that you (potentially) have no property taxes to deduct in 2016, resulting in more income taxes in 2016.  Everything else being equal, (which is impossible, pretty much), then having a "near term" benefit of $X because you paid property taxes in 2016 is more valuable than a "longer term" benefit of $X because you deferred those property taxes to 2017.

You'll also notice that I used the word "potentially" in discussing your scenario because although paying property taxes in 2016 can be a deduction for income tax purposes, that's the case only if all your itemized deductions exceed your standard deduction.  You really need to do some detail analysis on your own to determine if there's a benefit from delaying a deduction.

Many people who have itemized deductions that are very near their standard deduction do try to "bunch" deductions in alternating years by delaying/accelerating the payment of property taxes, state estimated taxes, medical bills, etc., allowing them to take the standard deduction one year and then the higher itemized deduction in the following year.

Tom Young

View solution in original post

5 Replies

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

That's a tough call, since we don't know yet what the 2017 tax law will be.  Will you be paying interest/penalty if you pay those property taxes late?
unifax2
New Member

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

No, I have until January 15 to pay my 2016 property tax without penalty. Reason I ask is I will probably only qualify for standard deduction this year so I am thinking if I save the 2016 property tax deduction for next year and join it with the 2017 (adding to around $8K), I would be able to itemize in 2017 and get some money back

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

That's a question that's utterly impossible to answer with a "Yes" or "No" as it depends entirely on your own personal situation and nobody here has that information.  The fact that paying property taxes in January results in (potentially) 2 years worth of deductions in 2017, resulting in less income tax, also means that you (potentially) have no property taxes to deduct in 2016, resulting in more income taxes in 2016.  Everything else being equal, (which is impossible, pretty much), then having a "near term" benefit of $X because you paid property taxes in 2016 is more valuable than a "longer term" benefit of $X because you deferred those property taxes to 2017.

You'll also notice that I used the word "potentially" in discussing your scenario because although paying property taxes in 2016 can be a deduction for income tax purposes, that's the case only if all your itemized deductions exceed your standard deduction.  You really need to do some detail analysis on your own to determine if there's a benefit from delaying a deduction.

Many people who have itemized deductions that are very near their standard deduction do try to "bunch" deductions in alternating years by delaying/accelerating the payment of property taxes, state estimated taxes, medical bills, etc., allowing them to take the standard deduction one year and then the higher itemized deduction in the following year.

Tom Young

Hal_Al
Level 15

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

"Bunching" tax deductions to maximize itemized deductions, and alternating years for the standard deduction    is a common tax technique.  See:
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/How-to-Maximize-Your-Itemi...>
<a rel="nofollow" target="_blank" href="http://www.nolo.com/legal-encyclopedia/itemize-bunching-tax-deductions.html">http://www.nolo.com/leg...>

Would be a good idea to wait till January to pay my 2016 property taxes so I would have 2 years worth of taxes to deduct in 2017?

One part of Trump's tax plan involves more than doubling the standard deduction amount, but of course we have no idea if this will eventually become law.
<a rel="nofollow" target="_blank" href="http://www.usatoday.com/story/money/personalfinance/2016/11/25/taxes-donald-trump-president/94207898...>
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question