Smart timing of deductible expenses can decrease your tax liability.
You can control the timing of your property tax payments and pay it in advance of the due date. If you pay your property tax before year end, you can increase your deductions for 2017.
With the proposed tax legislation, it may be most beneficial to claim the deduction in 2017 for several reasons. You may not itemize with the proposed higher standard deduction, property tax payments may be limited or eliminated as deductions.
For Hamilton County taxpayers, your new rate should be available at the county website on or around December 20, 2017. You can pay your bill in person, online or by mail.
Depending on your personal situation, this strategy might not work for you. Property tax isn’t deductible for AMT purposes or for those that don’t itemize.
Please contact us to schedule a time for us to discuss this or other ideas to reduce your 2017 income tax liability.