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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
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
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