Residents in high-tax countries are rushing to file property taxes before new rules come into effect
The new tax code limits the amount that individuals can deduct from federal returns.
December 27, 2017, 12:04 p.m.
5 min read
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Residents in New York, like others across the country, are rushing to file files because new tax legislation that went into law last week limits the amount of state and local taxes people can deduct on their federal returns, so Donald Clavin, City Tax Beneficiary in Hempstead, New York. The change could cost some homeowners thousands of dollars, especially in high-tax countries.
“Many Long Islanders will lose valuable tax deductions under the new federal tax laws,” Clavin wrote in a statement Tuesday. “In our office, we have helped a significant number of taxpayers over the holiday season trying to get the ‘gift’ of a tax deduction before the opportunity expires.”
He said there will now be a cap of $ 10,000 on the amount of property taxes that can be written off.
The new cap on deductions will affect homeowners far more than others in some states, including California, Connecticut, New York, and New Jersey, where average state and local deductions exceeded $ 17,000 in 2015, according to an analysis by The Associated Press.
The deadline for filing taxes is midnight on April 15th.
“You can prepay in part or in full and receive your deductions for your property tax payment,” Cuomo said in a statement. “At least this device will postpone the pain by a year.”
Officials in Montgomery County, Maryland also passed laws allowing residents to prepay their property taxes.
“For weeks now, many of us have been complaining about the Republican tax burden for a number of reasons. At the top of the list, however, was how criminal it is for expensive “blue” states and counties like ours, ”said Roger Berliner, Montgomery County Councilor who proposed the bill, in a statement Tuesday. “If the state and local tax deduction is capped at $ 10,000, thousands of dollars will be withdrawn from the pockets of large numbers of our residents, nearly 40 percent of whom are now listing their deductions.
“There may be other steps we can and should take in the future to help others who have been violated by federal law, and we should support them. However, this is the only step we can and should take at the local level to help our residents now, ”he added.
Experts warned that homeowners should consult their accountants before paying in advance.
“I can’t speak to the fact that the IRS will allow this as a deduction, but the governor made the executive order and to obey his order we came in here, implemented a plan, and we will.” Help the residents as much as possible, “said Clavin on Tuesday in an interview with the New York ABC broadcaster WABC.
He said his office plans to extend its hours on Saturday and Sunday – the last two days of the year.