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  • prepaying property tax?

    If my property tax is around 5k, it makes no sense to prepay it, correct? (asking bc of the tax code changes)

  • #2
    It depends - are you subject to the amt? (Or were you last year?)

    if you are not subject to the amt, and itemize on schedule A, I would prepay if your locality allows it (and in fact I did last week).

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    • #3
      After being discouraged by my CPA and the County Executive office, I persisted with the Collector of Revenue office, and my wife was able to pay our Real Estate/Property Tax, for 2018, in person today, and get a receipt dated 12/27/17.

      Our is a little north of $10k, which will result in an approximate $4000 reduction in Federal taxes this year (if I am doing the math correctly).

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      • #4
        why did the cpa discourage you?

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        • #5
          What do you mean by subject to the amount?

          If it is less than 10k does it matter?

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          • #6




            What do you mean by subject to the amount?

            If it is less than 10k does it matter?
            Click to expand...


            AMT is alternative minimum tax, not amount.

            If you are in AMT deductions such as property tax are not allowed.

            when you do your taxes, you have to calculate both ways, with amt and without, and use whichever method pays out more to uncle sam

            https://www.forbes.com/sites/nextavenue/2015/04/01/8-ways-to-survive-the-alternative-minimum-tax/#7f8fb36f6d92

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            • #7
              You can enter your information into 2017 turbotax, or an online calculator to see if you are subject to the AMT.  or, if your situation is similar to last year, look at line 45 on your 2016 form 1040 to see if you paid the tax last year.

              if you are subject to the alternative minimum tax, or do not plan to itemize, there is no point prepaying.

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              • #8




                why did the cpa discourage you?
                Click to expand...


                To be honest, I think that they were being lazy. A couple times I asked about it, and they brushed me off. Here was an opportunity to add significant value for their clients, and they chose to do nothing.

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                • #9







                  why did the cpa discourage you?
                  Click to expand…


                  To be honest, I think that they were being lazy. A couple times I asked about it, and they brushed me off. Here was an opportunity to add significant value for their clients, and they chose to do nothing.
                  Click to expand...


                  Quickenbooks and TT sounds like better advice unfortunately

                  Time to think about new representation?

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                  • #10










                    why did the cpa discourage you?
                    Click to expand…


                    To be honest, I think that they were being lazy. A couple times I asked about it, and they brushed me off. Here was an opportunity to add significant value for their clients, and they chose to do nothing.
                    Click to expand…


                    Quickenbooks and TT sounds like better advice unfortunately ?

                    Time to think about new representation?
                    Click to expand...


                    I was only planning to use them for one more year and then probably either move to someone else or go back to TT. Without itemizing (2018 and forward), my taxes should be simpler. I do have a question or two every year; I will just pose them on the forum here and go with the consensus answer.

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                    • #11







                      why did the cpa discourage you?
                      Click to expand…


                      To be honest, I think that they were being lazy. A couple times I asked about it, and they brushed me off. Here was an opportunity to add significant value for their clients, and they chose to do nothing.
                      Click to expand...


                      that's terrible.  this seems like a question they should be able to provide some information on, given that changes were just made.

                      do you have a separate cpa for taxes?  sadly, it makes me wonder if your taxes are being done in a lazy fashion as well.

                      admittedly if you are not just a w2 employee, taxes can be very difficult.  but they can at least explain that your circumstances make answers more difficult.

                       

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                      • #12
                        argh.  maybe vagabond's cpa knew more than we did?

                         

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                        • #13
                          Hi

                           

                          Just filed my 2017 taxes.  Seems I do incur AMT for 2017.  I did prepay my 2018 property taxes in full in dec 2017 and have a receipt for the same.

                          Calculation seen per turbo tax.  It just has a common box for 2017 taxes - no additional for prepayment.

                          I added both year property taxes there and put in value of 26000.

                           

                          What happens now as seems per comments on this thread that I wont get deduction sec to AMT.

                           

                          Do i incur penalty etc .  What should I do at this time as taxes are filed.

                           

                          The only deduction i get in state tax anyways.  Federal nos dont change whether i put in 13000 or 26000

                           

                          Thanks

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