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Property Taxes

Dear Friends and Clients,

We are sending this email as a follow-up to the earlier emails we've sent to make sure everyone understands that many of you can benefit f
m the strategy of prepaying your real estate taxes even if your real estate taxes are less than $10,000.00.  This is because the tax law is also increasing the standard deduction.  As a result many of you with modest real estate tax bills might be better off taking the standard deduction in 2018.  If that turns out to be the case you will derive no additional federal income tax benefit from the payment of real estate taxes in 2018, but you can reduce your 2017 federal income taxes by making your real estate tax payment in 2017.  If you decide you want prepay your 2017 real estate taxes refer to the email sent out yesterday as that email contains information as to how to go about prepaying your real estate taxes. 

To determine if this strategy might be beneficial to you take a look at your line 40 of Form 1040 of your 2016 federal income tax return. This strategy will  likely benefit you as follows:

          If your filing status is single and line 40 is approximately $12,000.00 or less;
          If your filing status is head of household and line 40 is approximately $18,000.00 or less; and
          If your filing status is married filing jointly and line 40 is approximately $24,000.00 or less. 

If you are unsure if this strategy will benefit you can send us an email by replying to this email and we can let you know.  Our office will be closed December 25th and 26th, but we will be monitoring our emails throughout the day today.  So if you do need assistance on this and would like an answer before Wednesday December 27th it will be better to send us an email.

We hope you and your families have a wonderful and healthy holiday.