IRS offers guidance for people pre-paying property taxes before 2017 ends
MILWAUKEE, Wisc. -- People have been lining up in Wisconsin and across the country to get their property taxes paid before the end of 2017. They want to take advantage of the unlimited tax deductions because the new tax law caps it at $10,000.
The IRS published an advisory for taxpayers who are pre-paying.
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.
Click here to see what Milwaukee Mayor Tom Barrett has to say to residents about paying property taxes in the city before January 1st.