Last week of year. Considering the new tax plan, should I...

I always pay previous year's property taxes by end of January without penalty. Should I pay them this week and possibly the 2018 taxes, too?

I am looking at doing this. Based on what I read, it is not clear whether the IRS is going to let you deduct 2018 property taxes paid in advance in 2017. I haven't seen a definitive answer on this.

You should definitely pay state income tax before the year end as well (if you want to receive the benefit). Effective next year, this item will also not be deductible

quote:

---

Based on what I read, it is not clear whether the IRS is going to let you deduct 2018 property taxes paid in advance in 2017. I haven't seen a definitive answer on this.

---

If your taxes have been billed and are due in January, this will not be an issue at all. Don't even think about it... just do it.

If your taxes aren't billed until later in the year (for example, New York bills throughout the year) it's a little more hairy.

General deduction rules for cash-basis taxpayers (which 99.9 percent of individuals are) allow for a deduction if an item is paid, provided the benefit of the expense doesn't exceed 12 months from date of payment, provided the expense doesn't run afoul of other parts of the tax code.

For example... there is another code section that deals with advance payment of mortgage interest... so for mortgage interest deductions, that provision supersedes the general rule.

There is no specialized section that deals to otherwise limit the deduction of property taxes.

The problem you will find, at least in Louisiana, is that many parishes are not set up to accept payments 12 months in advance, and it won't work.