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What is the benefit of paying property taxes due in 2018 in…

Customer Question
What is the benefit...

What is the benefit of paying property taxes due in 2018 in advance before the end of the year 2017, if the property owned is a rental real estate and the income passes through to the individual owners?

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Is the deduction of non taxable portion of the property tax limited to $10,000 for 2018?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I am talking about commercial real estate where the property tax for 2018 would be more than $100,000. If only $10,000 of this is deductible, that would result in a huge tax burden for the individual owners of the s corporation entity

Submitted: 2 months ago.Category: Tax
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Answered in 9 minutes by:
12/22/2017
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 2 months ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 480
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and can help you out with this.

Under the new tax rules, the $10,000 of state and local income taxes only pertains to itemized deductions on Schedule A. An S Corporation is still able to fully deduct these taxes under IRC 162 as long as they are ordinary and necessary.

Hope that helps. If you need anything else, just let me know. If not, please leave a rating. Thanks!

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Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago

Hey! Just wanted to follow up to see if you need anything else. If not, please leave a rating. Thanks!

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Customer reply replied 1 month ago
Thank you. Rating:simply perfect.
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Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 480
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