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Thursday, December 28, 2017

IRS Advisory on Prepaying Property Taxes

The IRS issued an advisory that states prepaying 2018 property taxes in 2017 will only be deductible if the 2018 property taxes were assessed prior to 2018. Thus a prepayment of anticipated property taxes that have not been assessed prior to 2018 are not deductible in 2017. State and local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.


For more information and examples see the IRS news article IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017 on the IRS website.

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