Should You Pre-Pay Your 2018 Property Taxes?

Should You Pre-Pay Your 2018 Property Taxes?

GREENSBORO, NC -- Count  it up! Folks paid $946,330 in ONE day to the Guilford County Tax Department. These were pre-payments of property taxes for the 2018 year.

How does that compare to last year? The biggest one day pre-payment of property taxes was $7,961 dollars. Whoa.

Why the big jump? The tax plan that was just passed caps the amount of tax payment deductions at $10,000 for the 2018 tax year (not this year's taxes but next year)

CHECK OUT THE AVERAGE TAX BILL IN EVERY COUNTY WITH THIS USA TODAY MAP.

Here's what’s included:

  • Property taxes for home, auto, boats
  • State income taxes withheld on your paycheck

If all that usually totals up above $10,000 you might want to look at pre-paying your 2018 property taxes before 2018 hits, so you can get the most for your deduction.

RELATED | Some homeowners see prepaying property taxes as way to save this year and next

But here's the rub,  the IRS posted an advisory on its website---  "A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017."

So--- if you just send in money-- no dice. You have to have a bill. For example, in Guilford County they will print out a pre-bill. Will the IRS see that as an actual assessment? Right now, there's no clear answer. You’ll have to decide whether it’s worth paying upfront in the hopes of having the deduction count.

READ MORE: UNC SCHOOL OF GOVERNMENT BLOG ON TAX ISSUE

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