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Old 03-21-2018, 01:07 AM
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Can I deduct my 2018 prepaid property tax with 2017 tax return

I have paid the year 2018 property tax in Dec 2017. Can I claim both years 2017 and 2018 property taxes with 2017 federal and state tax return?

As per IRS advisory Dec 27th, 2017 "Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017"

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

I live in Minnesota. I am not sure when 2018 property taxes were accessed or whether I received the year 2018 bill notice from the county in December 2017. But I have paid 2018 property taxes in Dec 2017 and also accepted by the county.

Below is the notice/display on the county website.

"If you pre-paid your 2018 property taxes
2018 property taxes are based upon the January 2, 2017 assessment and the 2018 property tax levies that were certified to the County Auditor on December 25, 2017. For further information about how this may affect federal tax deductions, please consult with a certified tax advisor."

Does the above county notice indicate that 2018 property taxes were accessed on December 25th, 2017 and I can use both yearly (2017 and 2018 ) property tax payments on my itemized deduction line item on Federal and state taxes?

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Old 03-21-2018, 01:56 AM
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I have paid the year 2018 property tax in Dec 2017. Can I claim both years 2017 and 2018 property taxes with 2017 federal and state tax return? ========>As you can see mos t o f TPs are cash method users so aslongas you paid your 2018 pty tax in 2017 you my claim it on your Sch A of 1040 on your 2017 return also you may claim it on your 2017 state return too.

As per IRS advisory Dec 27th, 2017 "Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017"

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

I live in Minnesota. I am not sure when 2018 property taxes were accessed or whether I received the year 2018 bill notice from the county in December 2017. But I have paid 2018 property taxes in Dec 2017 and also accepted by the county. ========>>>>as said, An expense you pay in advance is deductible only in the year to which it applies The cash basis method is, in simplest terms, an accounting method in which tax reporting depends on when money changes hands. Expenses are recognized when they are paid, not when they are incurred

Below is the notice/display on the county website.

"If you pre-paid your 2018 property taxes
2018 property taxes are based upon the January 2, 2017 assessment and the 2018 property tax levies that were certified to the County Auditor on December 25, 2017. For further information about how this may affect federal tax deductions, please consult with a certified tax advisor."

Does the above county notice indicate that 2018 property taxes were accessed on December 25th, 2017 and I can use both yearly (2017 and 2018 ) property tax payments on my itemized deduction line item on Federal and state taxes?=========>as mentioned above



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Old 03-21-2018, 04:26 AM
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Quote:
Originally Posted by purilokesh View Post
I have paid the year 2018 property tax in Dec 2017. Can I claim both years 2017 and 2018 property taxes with 2017 federal and state tax return?

As per IRS advisory Dec 27th, 2017 "Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017"

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

I live in Minnesota. I am not sure when 2018 property taxes were accessed or whether I received the year 2018 bill notice from the county in December 2017. But I have paid 2018 property taxes in Dec 2017 and also accepted by the county.

Below is the notice/display on the county website.

"If you pre-paid your 2018 property taxes
2018 property taxes are based upon the January 2, 2017 assessment and the 2018 property tax levies that were certified to the County Auditor on December 25, 2017. For further information about how this may affect federal tax deductions, please consult with a certified tax advisor."

Does the above county notice indicate that 2018 property taxes were accessed on December 25th, 2017 and I can use both yearly (2017 and 2018 ) property tax payments on my itemized deduction line item on Federal and state taxes?
Thanks for your reply. Do I need to attach any document that my county accessed the year 2018 taxes in 2017?



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Old 03-21-2018, 10:10 PM
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Originally Posted by purilokesh View Post
Thanks for your reply. Do I need to attach any document that my county accessed the year 2018 taxes in 2017?
Not necessarily however, you need to keep them as evidences.so You don't send any documents / paperwork to the IRS/ your state dept of revenue, all you need to do is submit your tax returns showing the figures from the records that you kep.



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