IRS Rules Prepaid Property Taxes May Still Be Deductible on 2017 Returns

The IRS ruled that taxpayers who prepaid their 2018 property taxes may still be able to deduct the entire amount from their 2017 federal taxes without regard to the $10,000 limit imposed by the Tax Cut and Jobs Act. To be eligible, the following must be true:

• Taxpayers must have made the payments by December 31, 2017.

• The property taxes must have been assessed prior to 2018 (i.e. anticipated taxes that have not yet been assessed are not be deductible.)

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