How Can I Pay Next Year's Property Taxes this Year
I'd like to pay the 2018 property taxes for my personal home, as well as my investment property, in the 2017 tax year if possible.
The reason is that, if the federal government revises the tax law and doubles the standard deduction, I effectively won't get any tax benefit from property taxes in 2018, because I wouldn't have enough to deduct to be able to itemize my deductions.
I called the city and asked if I could send them money now. They said no because they don't prepare next year's tax bills until the first week of January.
I'm thinking I'm out of luck, but wondering if anyone has creative ideas on how I could pay some or all of my 2018 property tax bills before the end of 2017. Is there a way to put money in an escrow account and count it as a 2017 payment, for example? Or just write the city a check now, before getting my tax bill?
I know the answer is probably just that there is no way to do this. But I pay about k in property taxes, so it is a significant savings if I can deduct it.
By the way, I don't have a mortgage on any of my properties. I just pay the taxes myself, directly to the city.
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Unless your county (or equivalent) has some mechanism to "pre-pay" property taxes then it sounds like you're out of luck. You could try to send them a check for the estimated amount on Dec 31st and see what they do with it. Worst case to me (not being a tax lawyer) is that the check will be rejected and you'd have to amend your 2017 taxes (or wait to file until you determine if the payment is accepted).
According to the IRS announcement, you can pay property taxes due in 2018 in 2017, and deduct it in 2017 federal tax deductions, only if the tax was assessed in 2017. If your tax hasn't been assessed, you are out of luck.
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