Wednesday, December 20, 2017

Prepay your Property Taxes for 2017 Tax Deduction

With the likely passage of the Tax Cuts and Jobs Act, it is estimated that the majority of taxpayers who currently itemize their deductions will take the standard deduction for the tax year 2018.  

The reason for this change will be capping of State and Local Tax and Property tax deductions at $10,000.  A single individual will now have a standard deduction of $12,000; head of household $18,000; and a married couple filing jointly $24,000.  A single individual may still be able to itemize although it will be more difficult to exceed the standard deduction for head of household and married couples.

Due to this limitation for some, the payment of property taxes and income taxes may not be utilized in 2018.  Therefore it will benefit taxpayers who will be capped at $10,000 to make their first installment of their 2018 property tax bill by December 31, 2017 in order to include in their 2017 deductions.

If your mortgage company makes the property tax payment through escrow, you will want to notify them if you do make a payment so that the tax bill isn't paid twice. Further, if you are looking at making charitable contributions, it may benefit you to make those contributions before the end of the year as well. It is best to discuss this with your tax preparer to determine if it will be a benefit to you.

You can contact your County Treasurer to request to pay your first installment before December 31st or you can obtain your first installment property tax bill for the following counties in Illinois:




If you have any questions about tax planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

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Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein. No one should rely upon the information contained herein as constituting legal advice. The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.




7 comments:


  1. Thank you for sharing. This article is very helpful and Inspirational. Excellent!


    Small Business Tax

    ReplyDelete
  2. Bryan
    You guys have put together an excellent website. Your posts are thought provoking. As a land owner and business person in Texas I am always on the watch for useful tax information.
    I would like to suggest that you do a post on agricultural property special valuation often called ag exemption. We are beekeepers with two properties that qualify for beekeeping ag in Texas. Illinois Statues include bees in their definition of a farm. If you want some background info I have written about beekeeping ag exemption in Texas and tax protesting for beekeepers. It certainly is not directly applicable, but could stimulate some thought.
    Thanks for all the good posts.
    Joe
    Bee Peaceful Beekeeping

    ReplyDelete
  3. Nice Information!!
    It is very helpful information about Tax It Here. Thanks for sharing
    Tax planning

    ReplyDelete
  4. Thank you for sharing such valuable information and tips. This can give insights and inspirations for us; very helpful and informative! Would love to see more updates from you in the future.

    Tax Advisor

    ReplyDelete
  5. It needs updated knowledge of federal laws to deal with the bits and parts of your finance. Without proper knowledge on the same, you can't deal with your business finance. Hence comes in the importance of hiring a professional corporate tax advisor in town.

    ReplyDelete
  6. Thank you for sharing such informative information about business taxation in delhi. This is very helpful blog on business taxation in delhi. I will come here again for getting more information.

    ReplyDelete
  7. Thanks for sharing these tips!
    Saves me from having to go to a Tax Professional

    ReplyDelete