Press release:
There have been several phone calls to my office regarding the pre-payment of 2018 Town/County property taxes to be paid to the Town Tax Collector before Dec. 31, 2017.
- The new Federal Income Tax Law will only affect an estimated 10-15 percent of the population in Genesee County as far as the SALT deduction. The law allows taxpayers to deduct up to $10,000 a year in a combined New York State income tax and property taxes. So if your deduction of those taxes are less than the $10,000, it probably doesn’t make sense to pay your 2018 taxes early. For example, if your 2018 town/county, school and village taxes are $2,500 and your total New York State taxes paid will be $3,500 = $6,000. Total taxes paid are $6,000 which is less than the maximum $10,000 allowed; therefore your taxes would still be deductible on your 2018 tax return.
- It is unclear whether or not the IRS will allow a deduction of pre-payment of 2018 taxes on your 2017 tax return; please consult your tax accountant for clarification.
- The tax bills are effective for the county fiscal year of Jan. 1, 2018 – Dec. 31, 2018. Payment for these taxes should be made Jan. 1 or after.
- This law has no effect on residents of the City of Batavia since city/county tax warrant isn’t until May.
I've been hearing about this
I've been hearing about this in the news all day. If you didn't itemize your taxes last year, this does not apply to you. Even if you did, it may not (get your accountant on the phone). There are lots of people scaremongering this, but the simple fact is that the average person does not have to worry about this.
If you are among those who have been doing really well and have significant state tax liabilities, then you need to jump on this opportunity to take the deduction early. You are also among those that the Democrats have been vilifying as "not paying your far share". So you have at least that to comfort yourselves with. It amazes me how many "well to do" people don't realize they are vilifying themselves by who they support politically.
Prince Andrew (Who would be King) is pandering to his wealthy mates down state with this opportunity. You know, the same ones that love to vote for politicians that vote to raise our costs of living and drive business and young people out of upstate and western NY. Bless his heart.
I wonder where the congressional district we are going to lose in 2020, due to population loss, is going to come from...