In light of the tax reform being passed, both the financial and mass media have been circulating the idea that everyone should run out and pay their property taxes before the end of 2017.
This has led to a large amount of anxiety across America.
Because of this potential misinformation, we’ve received a lot of questions concerning payment of 2017 real estate taxes.
Let’s run through an example of why this may or may not be good for you:
If Couple A (let’s call them Adam & Sylvia) has a real estate tax bill due January 31, 2018. They normally itemize deductions and they want to pay those taxes before December 31st so they can stack as many deductions on their Schedule A as possible before the new law takes effect in January 2018.
For those like Adam & Sylvia, it most likely will not hurt your situation if you choose to pay your 2018 property taxes in December of 2017. AND This does not always guarantee a net tax savings.
However, if Couple B (let’s call them Brian & Nancy) normally take the standard deduction we recommend Brian & Nancy stay on the same property tax payment schedule as they have in years past since they are not receiving a benefit by doubling up on this deduction in 2017.
For those like Brian & Nancy, stay on the same payment cycle as you have in years past. The standard deduction is a better number for you than the itemized number. It does not help you to “double up” paying your taxes.
Because Of The New Tax Law, Strategic Tax Planning Is A Top Priority For You in 2018
The passage of the tax bill makes updating your personal household tax plan a top priority for 2018.
With the tax reform passing with less than a week left until the end of the year it is not possible for us to update tax 2017 plans and provide personal advice to our clients before the end of the 2017 calendar year.
The BEST Time To Tax Plan Is MAY – NOV 2018, Make Sure You Get On Our Books
We will begin 2018 tax planning meetings in May after our 2017 tax preparation season (JAN-APR) is over.
We highly encourage you to meet with us during 2018 to update your tax plan going forward given the new tax environment.
This is the biggest change to the tax code in over 30 years. You don’t want to inadvertently make a mistake that could cost you your hard earned money.
There Are 2 Dates With Free Tax Education To Learn More
We’ll cover the updates to the tax law and potential strategies and tactics to successfully navigate the new tax code.
Feel free to register your spot when the invites become available in April of 2018.
We look forward to working with all of you to make sure 2018 and beyond is planned correctly and sets a solid holistic financial foundation.
Have a blessed New Year!
Justin Krueger, CFP™
Head of Financial Planning