Rush to prepay property taxes could pay off
Homeowners are rushing to prepay property taxes, before the new tax code takes effect January 1st.
Many want to deduct next years taxes this year to benefit from an itemized deduction that’s getting reduced.
The new tax bill limits itemized deductions for state and local taxes, capping them at 10 thousand dollars.
The government wants more people to use the standard deduction.
“From my understanding it's worth your wild to come down here and do it,” Randy Divilbiss said.
But to make the loophole work, your home has to be assessed in 2017.
CPA Bill Duncan says the maneuver works under limited circumstances.
“So for most people it's not going to be a big deal,” Duncan said.
But if you have an expensive home or itemize your taxes, he says the savings are worth it.
“Many people who itemized in the past will not longer do so in 2018 and forward,” Duncan said.
You can call an accountant to see if you qualify, also check your 1040, if there's a number in line 45 you won't benefit.
Back at the treasurer's office, traffic is up 30%.
Tax payers like Randy Divilbiss hopes his efforts pay off.
“I'm sure they'll be busy tomorrow too,” Divilbiss said.
Friday is the last day to prepay.