One of the biggest stories of the new tax act is the $10,000 limitation to be imposed on the deductibility of state and local taxes, beginning next year. There has been a rush for advice on this, with CPAs phones becoming very busy during this usually slow time of year. Our sister firm, Maddox, Thomson & Associates has written a blog post describing the opportunity in more detail, along with helpful information for Harris County, Texas property owners who have decided to make a prepayment, which must be done before the end of 2017!. You can read the article by clicking here.
Caveat, this is not necessarily a simple decision, so we recommend that you consider the tax implications carefully, hopefully with the able assistance of your tax advisor. Note also, that the IRS issued late guidance on this matter on 12/27/17 saying, “a prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.”
Please let us know if we can help answer any questions you may have.
Horizon Wealth Advisors is a Houston based fee-only wealth management firm. Horizon is a fiduciary advisor. We specialize in helping successful individuals and families understand, organize, and manage their often complex financial situations. Horizon offers integrated financial planning and investment management services.