To Pre-pay or Not Pre-pay?

BHHSNJ NJ301_H_Seal_cab_cmyk

by James Stefanile, ABR, GRI, SRES, QSC, gCertified, REALTOR/Salesperson, Berkshire Hathaway Home Services New Jersey Properties, Montclair Office

With tax reform looming on January 1st, homeowners with property taxes above $10,000 have just a couple of days to decide whether to pre-pay their 2018 taxes so as to be able to claim the property tax deduction under the old tax code.

Many towns, including Montclair, have extended the tax collector’s hours into Saturday, December 30th to accommodate pre-payers.

The most important thing to do is to consult your tax or financial advisor first (whose phone is ringing off the hook).  Having done that, then read this very good article from The New York Times of December 28th.  Click to read the article:

The article points out the issue of paying for un-assessed taxes.  In Essex County the 4th quarter tax bill is estimated because the Essex County budget is not released until the following new year.  There is, therefore, a risk in paying that quarter’s taxes and claiming the deduction.  You may want to speak to your township’s tax collector and, again, talk to a financial advisor or tax attorney.

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s