Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
As I just got my california property tax bill, with installments due in december and april.....and I'm setting up the payments to be paid electronically....

I'm assuming that this year this is no great incentive to pay off the April installment before Dec 31 (my 2018 income will remain the same as 2019). Am I correct in this assumption??


The Tax Cuts and Jobs Act eliminated any advantage from paying your full property tax bill in December by increasing the Standard Deduction and suspending the Miscellaneous Itemized Deductions. Without the Miscellaneous Itemized Deductions, I will be forced to switch from itemizing to using the Standard Deduction.

As far as property taxes are concerned, I started paying the full amount in December two decades ago. I'll continue doing this out of force of habit and because it is simpler. Besides you only reap the benefit of paying your property taxes in full the year that you switch from paying the property taxes in installments.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.