With the signing of the new tax legislation, everyone is scrambling to try to do some tax planning for the coming year. Starting in 2018, you will be limited to $10,000 in state and local tax deductions. This includes property taxes.
So if you typically itemize your deductions, you might want to consider the following:
1. Pre-pay your property taxes. Now, if you live in a co-op, that's going to be impossible. If you escrow your taxes in your mortgage payment, you need to call your mortgage company to see if they can pre-pay them for you. You should call your county tax collection office to see if they accept pre-payments.
2. If you typically owe state and local taxes when you file your tax return, you might want to consider making a payment now.
3. If you're a 1099-er and make estimated tax payments, you might consider making your January payment now.
People are still interpreting the new regulations, so stay tuned.
As always, we're here to answer any questions.
Happy New Year from the entire Walls Financial Team!