27
Dec 2019
0
(This is Blog Post #677)...
Prepaying property taxes related to the current year but due the following year has long been one of the most popular and effective year-end tax-planning strategies. But does it still make sense in 2018? The answer, for some people, is yes — accelerating this expense will increase their itemized deductions, reducing their tax bills. But for many, particularly those in high-tax states, changes made by the Tax Cuts and Jobs Act (TCJA) eliminate the benefits. What’s changed? The TCJA made two changes that affect the viability of this strategy. First, it nearly doubled the standard deduction to $24,000 for married couples filing jointly, $18,000 for heads of household, and $12,000 for singles and married couples filing separately, so fewer taxpayers will itemize. Second, it placed a $10,000 cap...
Property tax relief may be available for some Californians. The CA State Controller has announced applications are now available for the CA Property Tax Postponement program (previously suspended). The program allows eligible homeowners who are seniors or blind, or have a disability, to postpone property taxes on their primary residences. Funding is limited and applications will be processed in the order received, beginning 10/1/18. Participants must reapply and show eligibility each year. For details and an application, click here: https://bit.ly/2CUwLvn...