[Dr K]

Unclear for MontCo - they have specified an amount to prepay (100% of your 2017 RE taxes) but of course the actual assessment won't come out until July for MontCo so IRS probably won't accept the prepayment deduction. This is the issue with rushing through a law that take effect in 10 days...

Regarding the "sunsets in 2025" mentioned in Kurt's post above - how many here think anyone on the hill will have the courage to actually let any of these things sunset?

[N0tt0N]

The same douche bags that won't actually reform the tax code but will sugar coat these poison pills until everyone dies, leaves office, or forgets they voted for this permanent regressive eye gouge papered over with a temporary finger in the dike (I mean if you're going to mix metaphors then pass the ammunition!). A clear sign Congress doesn't even answer to their states much less their citizens. Multi-Partisan Douche Baggery is what makes this non-political. That said, perhaps this should all be moved to the Fail Thread?

But at least I'm not bitter...

[ItalyChicken]

The following publication from Veneble (no affiliation) is an excellent, subjective summary of the changes from the reform and side by side with the 2017 rules with none of the media BS and in laymans terms without getting into the nuances of the legal jargan and implications with other tax code of the bill. https://connect.venable.com/12/839/u...ons-in-hr1.pdf

[edevinney]

Grazie, Pollo.

[GT3]

Federal income tax is illegal.

10A
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

NULLIFY!!!!!!!!!!

[Ryan]

As others have stated, all you are doing id giving the states your money early. Deduction will be disalloed. Advisory from the feds released on December 27th rguarding htis issue:

IR-2017-210, Dec. 27, 2017

WASHINGTON - The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.

The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.

The following examples illustrate these points.

Example 1: Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return.

Example 2: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.

The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills. Time remains to make charitable donations. See IR-17-191 for more information. The deadline to make contributions for individual retirement accounts - which can be used by some taxpayers on 2017 tax returns - is the April 2018 tax deadline.

IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.

[Ryan]

Originally Posted by GT3

Federal income tax is illegal.

10A
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

NULLIFY!!!!!!!!!!

LOL Clark paying fed taxes

[Robert in Potomac]

Originally Posted by Ryan

As others have stated, all you are doing id giving the states your money early. Deduction will be disalloed. Advisory from the feds released on December 27th rguarding htis issue:

IR-2017-210, Dec. 27, 2017

WASHINGTON - The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.

The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.

The following examples illustrate these points.

Example 1: Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return.

Example 2: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.

The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills. Time remains to make charitable donations. See IR-17-191 for more information. The deadline to make contributions for individual retirement accounts - which can be used by some taxpayers on 2017 tax returns - is the April 2018 tax deadline.

IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.

Actually, there could still be an advantage to prepaying property taxes - you may be able to deduct these prepayments on your state return. However, this only becomes beneficial if the state adopts the new Federal changes, i.e. limiting the amount of itemized property tax deductions, even assuming AMT does not apply to your federal tax.

It looks like we are stuck with the arbitrary, perhaps contrary, inconsistent reductions to certain aspects of federal taxes and will be for many years.

Nevertheless - a peaceful and healthy Happy New Year to all.

Robert

[Croc R]

Originally Posted by GT3

Federal income tax is illegal.

10A
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

NULLIFY!!!!!!!!!!

But see the 16th amendment, which grants Congress the "power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration"

[N Fotouhi]

Originally Posted by Croc R

But see the 16th amendment, which grants Congress the "power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration"

Clark’s reading of Constitution is similar to his views of track limit. only what benefits him counts.

As a NJ resident, I find anyone a retired IRS employee in VA trying to get gain advantage on property taxes amusing.