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I have a question regarding the state and local tax

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I have a question regarding the state and local tax limitation passed by congress limiting the deduction to $10000. Is this final or is it still being ironed out by the powers that be? My clients are concerned about paying their April taxes before the end of the year. I have heard from a colleague that this is will be disallowed as a deduction. I am so confused.

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

Nope that is all.

Submitted: 1 month ago.Category: Tax
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Answered in 2 minutes by:
12/29/2017
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 466
Experience: Adjunct Professor
Verified

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

That is final and takes place starting 1/1/18. So, that limitation will not be in place when you file your tax return in the next couple of months, but will apply when you file your 2018 return in 2019.

The law prevents you from prepaying 2018 income taxes. However, you may be able to pre-pay 2018 real estate taxes. In order to do so, the amount must be assessed before 1/1/18. If there is no assessment, the IRS considers the payment a mere deposit instead of a payment of taxes.

A lot of clients now are rushing to prepay their 2018 real estate taxes due to this. As I said, just make sure there has been an assessment of tax.

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 and see if you need anything else. If not, please leave a rating. Thanks!

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Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 466
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