Anyone else prepaying property taxes so you can still deduct them this year?

[tvguy]

The big problem with losing the deductions in lieu of decreased rates and increased child tax credit is that the rate cuts are set to expire and your kids will eventually grow up...but the deductions are gone for good.

It cycles back around every 20 years.

 

[disneymagicgirl]

Holy moly I can't believe what some of ya'll are paying in property taxes. Ouch! We pay about $3800/yr for a $775k home. We have no state income tax. I guess that's why about 100 people per day are moving to Nashville. I'd be seriously considering moving out of some of the states ya'll are talking about.
I'm looking forward to the tax bill saving us some dough. We have paid almost $80k in federal taxes this year. Yuck.

 

[MomToOne]

The big problem with losing the deductions in lieu of decreased rates and increased child tax credit is that the rate cuts are set to expire and your kids will eventually grow up...but the deductions are gone for good.

That's not true with this bill. The deductions and exemptions are temporarily suspended for the tax years 2018-25, just like the lower rates are in place for the same date range. I'm not a fan of the new plan, but at least they didn't screw us completely in that regard.

 

[DawnM]

Holy moly I can't believe what some of ya'll are paying in property taxes. Ouch! We pay about $3800/yr for a $775k home. We have no state income tax. I guess that's why about 100 people per day are moving to Nashville. I'd be seriously considering moving out of some of the states ya'll are talking about.
I'm looking forward to the tax bill saving us some dough. We have paid almost $80k in federal taxes this year. Yuck.

That is super low. We pay about 1%. So, for your house, about $7,7500 per year.

 

[DawnM]

Our property taxes are tied into our escrow account. Can I still prepay them? How do I do that? I realize I can make multiple phone calls to ask, but thought you all might know the answer, and I am tired.

We are also going to do more for charitable contributions for this year before the year closes out.

 

[deide71]

That's not true with this bill. The deductions and exemptions are temporarily suspended for the tax years 2018-25, just like the lower rates are in place for the same date range. I'm not a fan of the new plan, but at least they didn't screw us completely in that regard.

Hmmmm, so I get my deductions back once the rate cuts expire? We shall see. Meanwhile the cut in corporate taxes is permanent.

 

[deide71]

Hmmmm, so I get my deductions back once the rate cuts expire? We shall see. Meanwhile the cut in corporate taxes is permanent.

And The personal exemption of 4100 per household member? Are those coming back? And if so will they have adjusted it to inflation for the seven years it is gone? For those of us with kids over 17 in college we lose their personal exemption of 4100 each to have it replaced with a $500 credit. So if that 4100 deduction came off of income taxes at 25% it saved me $1025 in taxes and replaced it with a $500 credit. Net loss of $2050 for my family. This is on top of losing $2000 in state and local tax deductions (12000-10000 cap). There goes another $500. Subtracting the amount I will save from the 3% cut in rates I only pay an extra $100 a year.
But honestly my issue is not paying more in taxes. We are relatively well off. My issue is the massive tax cuts given to corporations (who are already posting record profits) are putting the government into massively more debt.

 

[havaneselover]

It’s an awful awful bill. It’s alarming really. Taxes are really pretty low already compared to history. Corporations that will make out the best will simply buy back their own stocks with their extra money. It’s not like they will ever pass that on to their employees. They historically don’t.

Well they already have. Comcast and AT&T announced bonuses. Wells Fargo & Fifth Third announced hourly wage increases. Boeing has also indicated its workers will benefit.

 

[disneyeveryyear]

Here's a calculator for those so inclined:
http://taxplancalculator.com/

Thanks for this!

 

[robinb]

Holy moly I can't believe what some of ya'll are paying in property taxes. Ouch! We pay about $3800/yr for a $775k home. We have no state income tax. I guess that's why about 100 people per day are moving to Nashville. I'd be seriously considering moving out of some of the states ya'll are talking about.
I'm looking forward to the tax bill saving us some dough. We have paid almost $80k in federal taxes this year. Yuck.

Wow! We pay twice as much on a home that's worth half as much. Plus, we pay income tax too. Our property taxes are already paid for 2017.

I am purging out all the unused stuff in my house and donating something somewhere every single day to get the deduction. I wonder how the tax bill will affect charities.

 

[MillauFr]

Holy moly I can't believe what some of ya'll are paying in property taxes. Ouch! We pay about $3800/yr for a $775k home. We have no state income tax. I guess that's why about 100 people per day are moving to Nashville. I'd be seriously considering moving out of some of the states ya'll are talking about.
I'm looking forward to the tax bill saving us some dough. We have paid almost $80k in federal taxes this year. Yuck.

We have the same "problem" in Seattle. With no state income taxes and low property taxes 0.55% of our house value every year the people are flooding in. The place is getting far too crowded and the traffic is horrendous. Tower cranes all over the place with new high rises.

 

[MillauFr]

This homeowner is really getting a great deal on their property taxes...

https://www.zillow.com/homes/for_sa...,-122.317535,47.67665,-122.319506_rect/18_zm/

They sold last year for $4.1m and their property tax bill was only $3,700 for 2016.

 

[wendow]

We have the same "problem" in Seattle. With no state income taxes and low property taxes 0.55% of our house value every year the people are flooding in. The place is getting far too crowded and the traffic is horrendous. Tower cranes all over the place with new high rises.

Same here in CO. We do have a state income tax but it's very low and our property taxes are 0.50% (in my county). The traffic is getting awful and it's a constant influx of people. Home prices just keep going higher and higher b/c of the low inventory in real estate here.

We are considering moving back to TX (where we grew up) in about 6 mos and while I like the lower home prices, I just cringe at the property taxes. I'm so spoiled by what we pay here!

 

[disneymagicgirl]

We have the same "problem" in Seattle. With no state income taxes and low property taxes 0.55% of our house value every year the people are flooding in. The place is getting far too crowded and the traffic is horrendous. Tower cranes all over the place with new high rises.

Same here in CO. We do have a state income tax but it's very low and our property taxes are 0.50% (in my county). The traffic is getting awful and it's a constant influx of people. Home prices just keep going higher and higher b/c of the low inventory in real estate here.

We are considering moving back to TX (where we grew up) in about 6 mos and while I like the lower home prices, I just cringe at the property taxes. I'm so spoiled by what we pay here!

Yeah that’s the downside...traffic congestion, infrastructure and building can’t keep up, and schools are getting more overcrowded by the day because they can’t find/build them quick enough. Those are all problems here in nashville.

 

[tvguy]

If you do want to pre-pay your property taxes, check with your local tax office. Ours put out a warning today that you have to pay them in person if you want them credited as being paid in 2017. Anything sent by mail, or sent electronically won't be credited until 2018.

 

[amalone1013]

Same here in CO. We do have a state income tax but it's very low and our property taxes are 0.50% (in my county). The traffic is getting awful and it's a constant influx of people. Home prices just keep going higher and higher b/c of the low inventory in real estate here.

We are considering moving back to TX (where we grew up) in about 6 mos and while I like the lower home prices, I just cringe at the property taxes. I'm so spoiled by what we pay here!

I didn't realize property taxes were so low here. But I can't find a place we can afford because of the other problems you listed...

 

[mousestruck]

We are a middle class, modest income family in NJ and will pay thousands more. We itemized about $21,000 - including $15,000 in local and state taxes and had about $16,000 in exemptions for our family of four. The loss of exemptions kills us because we have a 17 year old and a college student, so no child credit. We get $500 per dependent instead. So we now get the standard $24,000 deduction and $1,000 tax credit instead of reducing our taxable income by $37,000. This pushes us into a higher tax bracket, so we’re also paying a higher tax rate.

This new tax plan amounts to a huge tax burden for us, while corporations and wealthy individuals enjoy huge tax breaks. It really upsets me.

 

[tvguy]

We are a middle class, modest income family in NJ and will pay thousands more. We itemized about $21,000 - including $15,000 in local and state taxes and had about $16,000 in exemptions for our family of four. The loss of exemptions kills us because we have a 17 year old and a college student, so no child credit. We get $500 per dependent instead. So we now get the standard $24,000 deduction and $1,000 tax credit instead of reducing our taxable income by $37,000. This pushes us into a higher tax bracket, so we’re also paying a higher tax rate.

This new tax plan amounts to a huge tax burden for us, while corporations and wealthy individuals enjoy huge tax breaks. It really upsets me.

Yes, 5% are paying more. I'm middle class too, and my total take home pay is about what your write off was.

 

[robinb]

I think that most DISers are in the unsweet spot for the tax reform. They make too much and too little to profit from it.

 

[kandb]

We live in Bergen County NJ. Our yearly taxes are $11,700, which is not that bad for our area. My sister lives in a different town than me in Bergen County and her taxes are $22K a year. I wish NJ was more fiscally responsible. Taxes in this state are ridiculous. We love NJ but not all the taxes we pay. Schools are great and so are services but not taxes.