Late breaking tax tip/never mind

[mntetn]

This tax tip is now expired.

(written 12/31/08; no longer helpful as of 01/01/09)
I just learned this a few minutes ago on receiving and quickly reading my tax packet. It seems you can now deduct $1000 of your real estate taxes ($500 if single) even if you don't itemize.

I usually shift my property taxes to the beginning and the end of every other year in order to get enough to itemize in alternate years. This is the year I was not going to pay until after the 1st of the new year. Instead, I just wrote a check for $1,000 and rushed it to the mailbox before the last pickup. I will pay the rest after the first of the year, plus next year's taxes at the end of the year. This should still give me enough next year to itemize, and if not, at least I can deduct another $1,000.

If this describes you (got a property tax bill due soon, haven't already paid $1,000 in property taxes this year, and don't have enough to itemize) then it could mean an extra $250 to $350 if you act in the next hour or two.

I hope this benefits at least one or two of you.

Happy new year!

Minty man

[TheCalvinator24]

So, if I pay two year's worth of property taxes in the same year, I can claim both as deductions?

[mntetn]

So, if I pay two year's worth of property taxes in the same year, I can claim both as deductions?

I don't know if I should attempt to advise an attorney but it's worked for me. (OK, I did work for H&R Block once, about 30 years ago!)

If you itemize every year, it doesn't help. But my house is paid off, so I don't have interest to figure in. I am always close to having or not having enough.

It's similar to bunching your charitable deductions. You normally deduct things in the year you pay them. (Your situation may vary.)

[Bob78164]

So, if I pay two year's worth of property taxes in the same year, I can claim both as deductions?

Only to the extent the liability has already accrued, even if not yet due. --Bob

[SportsFan68]

This tax tip is now expired.

(written 12/31/08; no longer helpful as of 01/01/09)
I just learned this a few minutes ago on receiving and quickly reading my tax packet. It seems you can now deduct $1000 of your real estate taxes ($500 if single) even if you don't itemize.

I usually shift my property taxes to the beginning and the end of every other year in order to get enough to itemize in alternate years. This is the year I was not going to pay until after the 1st of the new year. Instead, I just wrote a check for $1,000 and rushed it to the mailbox before the last pickup. I will pay the rest after the first of the year, plus next year's taxes at the end of the year. This should still give me enough next year to itemize, and if not, at least I can deduct another $1,000.

If this describes you (got a property tax bill due soon, haven't already paid $1,000 in property taxes this year, and don't have enough to itemize) then it could mean an extra $250 to $350 if you act in the next hour or two.

I hope this benefits at least one or two of you.

Happy new year!

Minty man

Thanks for the tip! Pretty sure it wouldn't help us anyway, but still worth looking into.