Many tax law changes are set to begin on New Year’s Day. While there’s nothing you can do with the changes as to what is deductible, what is not, and what is limited, there is one thing for certain:
Since Property tax and State Income tax will have a combined limit to their deductibility ($10,000) in 2018, it makes the most sense to take the most deduction possible in 2017 before the limit takes place. The obvious way to utilize that is to pay the second half of your property tax bill before December 31, 2017 (due April 10). This is only beneficial if you itemize your deductions and do not fall into the AMT trap. See a tax professional for your specific situation.
Landlords and Investment Property Owners:
Good news! Your properties still qualify as business assets and are NOT subject to SALT (State And Local Taxes) deduction limits. Interest deductibility remains the same as well.
