Tax Bill:

the.irvine

Active member
If Trump signs this new bill before Christmas time, would this become effective for 2017. So when we are ready to file our 2017 taxes in Q1 2018, we will be filing with new tax rules?
 
Don?t think it matters.

https://www.nytimes.com/2017/12/15/us/politics/republican-tax-bill.html

Republicans' $1.5 Trillion Tax Plan Appears on Track to Pass Next Week

In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year's state and local income taxes, in order to deduct them from 2017 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.
 
I guess you prepay just in case the bill does NOT pass. That's the thinking. There's no downside that I can see.
 
I'm not a tax guy, but my understanding is that the property tax deduction is capped at $10,000 in 2018. There is no cap in 2017, so if you prepay 2018's property tax in 2017 it could (depending on your AMT situation) all be deductible this year. Same is not true for SALT deductions as was pointed out.
 
morekaos said:
Don?t think it matters.

https://www.nytimes.com/2017/12/15/us/politics/republican-tax-bill.html

Republicans' $1.5 Trillion Tax Plan Appears on Track to Pass Next Week

In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year's state and local income taxes, in order to deduct them from 2017 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.

Correction: December 20, 2017
An earlier version of this article misstated the types of taxes that taxpayers would be prohibited from prepaying under the new tax legislation. It would bar taxpayers only from prepaying next year?s state and local income taxes, not property taxes.
 
If you pay the taxes due on April 2018 before Dec. 31, 2017, you can deduct that for 2017.  You can?t pay your taxes that are due on Dec. 2018 to deduct for 2017.
 
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