The new tax plan being shaped by the US Congress includes significant changes for homeowners and buyers. Reports suggest that a finished bill will be presented to the President by next week, so time is of the essence!
One big change for homeowners concerns the amount of local and state property taxes that they deduct when filing their taxes. Previously there was no cap on the taxable amount. The new bill proposes a $10,000 cap on property taxes which means homeowners can only deduct the first $10,000 of their local and state property taxes when filing. Any amount left after the $10,000 is now taxable.
How to Save Big Before the New Year
Most property tax bills are billed on a quarterly or semi-annual schedule, and many municipalities will require you to pay the remainder of your property taxes for 2017 by the 1st or 2nd weeks of January. If you pay your balance now in 2017 instead of waiting for the January due date, you may be able to deduct the full amount before the new law takes effect. Save hundreds or thousands by paying just a day or several earlier! Contact your town to find out how to pay your tax bill early and as always, please discuss your specific situation with your tax accountant. Act quickly!
National award-winners and seasoned Realtors with over many years of experience in Northern & Central New Jersey, Rahul & Smitha and their team have become New Jersey’s “Go To” agents and consistent leaders with a reputation for tenaciously protecting their clients’ interests. They specialize in Morris, Somerset, Essex, Union and Passaic counties.
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