{"id":586,"date":"2018-08-06T07:00:41","date_gmt":"2018-08-06T07:00:41","guid":{"rendered":"https:\/\/tysllp.com\/?p=586"},"modified":"2023-10-09T17:35:45","modified_gmt":"2023-10-09T17:35:45","slug":"property-state-and-local-taxes-are-still-deductible","status":"publish","type":"post","link":"https:\/\/tysllp.com\/property-state-and-local-taxes-are-still-deductible\/","title":{"rendered":"Property, state and local taxes are still deductible, up to a point"},"content":{"rendered":"

A momentous change took place last December 2017 in the form of the Tax Cuts and Jobs Act (TCJA), which is the tax reform bill that placed a new limit on deductions for state and local taxes, including property taxes. \u00a0Previously these deductions were unlimited for individuals, though many people who owed the alternative minimum tax lost the benefit of some of these write-offs. So, what does this mean for the typical homeowner? <\/span><\/p>\n

Quite simply, it means taxpayers can deduct property taxes you pay in 2018 on your 2018 tax return, if you did not pre-pay them in 2017. And, future years will remain deductible. The only exception is that beginning with tax year 2018, you can only deduct the first $10,000 of your combined property and state income taxes if they exceed that amount. The government capped the deduction amount at $10,000 as a combined limit. <\/span>Now, the two taxes have a single combined limit, so taxpayers in income tax states could lose all or part of their property tax deduction even if their property taxes are below $10,000. This limit goes into effect for 2018 taxes to be filed in April 2019.<\/span><\/p>\n

Although it sounds complicated, the provisions are straightforward to understand. Taxpayers may receive the deduction if they are the owners of the property and it is for personal use. You must itemize deductions to receive this property tax break. Here are a few additional items to note:<\/span><\/p>\n

Deductible property taxes include taxes paid at closing when buying or selling a home, as well as taxes paid to your county or town\u2019s tax assessor (either directly or through a mortgage escrow account) on the assessed value of your property.<\/span><\/p>\n

You may deduct it for your:<\/b><\/p>\n