Homeowners across the country looked to battle the coming $10,000 cap on state and local tax deductions by paying their 2018 property taxes in advance. Now the IRS has announced that only property taxes that have been assessed can be deducted in 2017.
The announcement did little to clarify who can take a deduction now for 2018 taxes.The Service didn’t define what “assessed” means in this case, and with each taxing agency having its own dates and systems for property tax bills, confusion is the byword.
The final word — for now — goes to homeowner Brian Lowit of Baileys Crossroads, VA, who wired a payment to his county and then heard that he might not get a deduction. As he said to the Post, “It’s a nightmare. I’m definitely frustrated, annoyed and irritated. The rush to get that bill done screwed everyone up. It’s insanity and it’s stupid.”
Write a massive tax bill in secret and hold no hearings on it. What could go wrong?