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Article of Interest: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017

The following article was sourced from IRS.gov. To download a PDF please click here: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 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.

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

Click here to read the rest of the article on IRS.gov


About Ellin & Tucker

Founded in 1946, Ellin & Tucker (www.ellinandtucker.com) is a leading CPA firm headquartered in Baltimore, Md. that specializes in accounting, auditing, consulting, forensics and valuation, and tax services. As the fifth largest accounting firm in Greater Baltimore, Ellin & Tucker employs more than 120 people in offices in Baltimore City and Washington D.C., and serves national and international clients through its affiliation with DFK International/USA, a top 10 international association of independent, full-service accounting firms and business advisors in major geographic and economic centers throughout the U.S. and around the world.

 

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