IR-2017-210, Dec. 27, 2017
WASHINGTON – The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.
The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.
The following examples illustrate these points.
Example 1: Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return.
Example 2: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.
The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills. Time remains to make charitable donations. See IR-17-191 for more information. The deadline to make contributions for individual retirement accounts – which can be used by some taxpayers on 2017 tax returns – is the April 2018 tax deadline.
IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.
Tuesday, December 26, 2017
[Montclair] Tax Office to Open Saturday, Dec 30 for Payments
The Montclair Tax Collector’s office will be open Saturday, December 30 from 10:00 a.m. to 3:00 p.m. so that property owners who would like to pay 2018 taxes in advance have additional time to do so.
“The new federal tax bill was signed into legislation December 22, leaving little time for property owners to meet the end-of-year deadline if they are considering prepaying 2018 taxes,” said Mayor Robert Jackson. “Given the recent influx of queries to the Township regarding 2018 property tax pre-payment, we decided to provide additional time on a Saturday for those residents and business owners who wish to pay their 2018 taxes in advance.”
First and second quarter preliminary tax bills have already been sent to property owners and may be paid online. If taxpayers wish to prepay third and fourth quarter bills, they will need to estimate the amounts to be paid. Third and fourth quarter taxes must be paid by mail or in person. Checks must be received by Saturday, December 30.
In August, when the actual 2018 tax rate is struck, billing will be adjusted based on what property owners have prepaid.
“The Township Council and I would like to thank the Tax Collector’s office staff for putting in the extra effort to assist our residents with the opportunity to have additional time for their transactions.”
https://www.montclairnjusa.org/cms/One.aspx?portalId=5276290&pageId=11854078
Glen Rock:
Prepayment of 2018 Taxes Now Being Accepted (Revised 12/28/17)
Thursday, December 28, 2017
Please be advised that the Borough of Glen Rock Tax Office is accepting pre-payments for 2018 property taxes from individual tax payers.
All payments received in the tax office Friday, December 29, 2017 will be posted in the year 2017. We request and strongly encourage you to please get in line some time before 12pm (noon time), although Borough Hall will be open until 2pm. This will allow our staff the necessary time to finish processing all of the payments and get home to their families at a reasonable time.
You can also drop your payment off in the Borough Hall Mail Box located on front of the building toward the right. Please be sure to include your name, address and phone number and (if you know it) your block and lot number. It may be a good idea to include in the memo section of the check, or on a sheet of paper, which quarter(s) you are paying off. YOUR PAYMENT MUST BE IN THE BOX BEFORE NEW YEAR’S DAY TO BE POSTED IN 2017. THERE ARE NO EXCEPTIONS.
If taxes are normally escrowed through a bank and a tax payer wishes to pre-pay themselves, they are advised to notify their banks of this payment. Duplicate payments will be credited to the next open Quarter, refunds will not be issued.
If a resident wishes to pay more than the amount billed for 1Q & 2Q 2018, an estimate of the yearly tax based on the 2017 taxes will be accepted. Again, refunds will not be issued, all overpayments will be rolled into the next open Quarter.
https://www.glenrocknj.net/index.asp?SEC=C66C388B-270E-457D-AA59-15CA27F7E627&DE=70F50E5A-304F-4AA0-B75A-C8BE6CD1091B&Type=B_PR
Wyckoff:
PREPAYMENT OF 2018 PROPERTY TAXES
Posted on: December 20, 2017 – 3:53pm
Dear Homeowner,
The Tax Collector of the Township of Wyckoff will accept prepayment of 2018 taxes up to an estimated amount for the 2018 calendar year. This payment must be received no later than 12/31/2017. Our offices are open regular Town Hall business hours until 4:30 Friday 12/29/2017 and will not reopen until Tuesday January 2nd, 2018. On-line payments are accepted through 6:00 pm on 12/31/17 at http://www.wyckoff-nj.com click “Pay Tax and Sewer” interest and fees apply.
Payments received before 12/31/17 will be applied to quarterly tax billing throughout the calendar year of 2018. If a payment for a quarter results in an underpayment and a balance due, it is the property owners responsibility to ensure all taxes are paid in full by their due dates. It is the property owners responsibility to ascertain and pay any open balances by their due dates to avoid delinquent interest. If an overpayment results after the 2018 final 4th quarter billing, this amount can be refunded or applied to 2019 preliminary tax billing at the property owners request.
Thank you for your inquiry,
Wyckoff Tax Team
https://www.wyckoff-nj.com/home/news/prepayment-2018-property-taxes
How is something supposed to be postmarked on a Sunday?
“On Wednesday afternoon, Gov. Chris Christie added his voice to the last-minute payment discussion, signing an executive order that directs the Director of the Division of Local Government to notify municipalities to accept payments for 2018 property taxes in calendar year 2017 and require them to credit those payments as received in 2017 if the payment is postmarked on or before Dec. 31, 2017.
“ ‘The action I took today will ensure that local governments are flexible and accommodating of their local property taxpayers as we transition to the new federal tax code for 2018,’ Christie said in a statement. ‘This executive order requires local officials to dedicate the resources and staffing to serve New Jerseyans who are planning in this way for their families and their futures.’ ”
https://www.mycentraljersey.com/story/news/local/2017/12/27/nj-homeowners-rush-prepay-property-taxes-new-tax-law-takes-hold/108952974/
Fanwood:
“In Fanwood, the tax office will be accepting payments for the first two quarters that have been billed for February 2018 and May 2018, according to a statement released Thursday afternoon. If residents wish to prepay these two quarters before the end of the year, they can either visit the Borough website, https://www.fanwoodnj.org/, and pay online up to 12 midnight of Dec. 31, 2017, or pay in person at the tax office in Borough Hall. Hours have been extended and the tax office will be open on Saturday, Dec. 30 from 9 to 11 a.m. to accept payments as courtesy to residents, according to the statement.”
https://www.mycentraljersey.com/story/news/local/2017/12/27/nj-homeowners-rush-prepay-property-taxes-new-tax-law-takes-hold/108952974/
Verona (with a “zipper” announcement running across the top of the town website as well):
TAX INFO: 2018 Prepayments
Published on Dec 22, 2017 at 11:00a.m.
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*Please Note: The Tax Office will be open for Tax Payments Only this Saturday, 12/30 from 10am-1pm.
https://www.veronanj.org/home-news/tax-info-2018-prepayments