Prepaying Real Estate Taxes

[TAXNJ]

Think 2-19-16 post similar to this post. Read all 2-19-16 reply posts which should address the original post.

http://forum.thetaxbook.com/showthread.php?26388-Prepaid-Real-Property-Taxes&highlight=Real+estate+taxes

[TaxGuyBill]

You say she has received a proposed bill. I see no problem paying and deducting if it is in response to a bill. Generally or maybe even always you can't prepay by more than 1 year.

It's not a "bill" (it even specifically says it is not a bill, and not to pay it). It is just a statement of the proposed taxes for the upcoming year.

However, you do make an excellent point about prepaying things for 1 year.

[Kram BergGold]

I vote yes

You say she has received a proposed bill. I see no problem paying and deducting if it is in response to a bill. Generally or maybe even always you can't prepay by more than 1 year.

[FEDUKE404]

Paying property tax bill in advance

I guess it depends on the area. NC has a single real property tax bill that normally arrives in July. The bill is "due" on September 1st but interest does not accrue until January 1st of the following year. (There are no pre-pay discounts.)

A large county in NC will accept an amount up to the 2016 (prior year) bill if a homeowner wishes to prepay the 2017 bill by the end of 2016. Clerk in tax office stated this is a common practice this time of year.

It can come into play for those with borderline itemizing/standard deduction situations. With some planning, a client can easily pay three years of property taxes during the same calendar year. There also are situations where shuffling such payments around could impact AMT considerations.

FE

[DonPriebe]

Never noticed that ...

My NY property tax bill is marked as Fiscal Year 01/01/17 - 12/31/17 based on Warrant Date 12/27/16. It was postmarked 12/23/16 and arrived 12/27/16.

[TaxGuyBill]

I doubt it.

The actual assessment of tax isn't until January 2nd, so nothing is official before that. You can't get a deduction for paying something that doesn't exist yet.

[JON]

Can Minnesota real estate taxes due in 2017 paid in December 2016 to get the deduction. She will be paying her residence and rentals real estate taxes off of the proposed statements received all ready.