Federal Income Tax: Urgent 2017 year-end notice about real estate taxes

We have a critical federal income tax issue of note for consideration by our clients:

>>> You may benefit from pre-paying your 2017 real estate/property tax bill(s) before year’s end.

>>> County Treasurers in Hamilton County, Butler County, Clermont County and Warren County have confirmed that you can determine and pay your entire 2018 real estate tax liability (both halves) before December 31, 2017.

  1. The just-passed federal tax bill caps deductibility of combined state and local income and property taxes at $10,000 per individual or married couple (the cap is the same regardless) for tax year 2018 and going forward, but that cap does not apply in 2017.
  2. Thus, if your state and local income and real estate tax liability is expected to exceed $10,000 in 2018, you may strongly benefit from pre-paying property taxes due in 2018 right now.
  3. We have checked with Hamilton County, Clermont County, Butler County and Warren County.  Each County allows the prepayment of your entire 2018 property tax bills (technically the 2017 bills payable in 2018) before year’s end.
  4. That means you may have the ability to pre-pay both halves before December 31, 2017 and obtain that deduction for the 2017 tax year.
  5. The 2017 tax year property values have only been calculated for Hamilton County, and those values may be ascertained by going to this link.
  6. For those remaining counties, your 2017 tax year payment may be based on the amount you paid for the 2016 tax year payment.
  7. For more information on how to pay, please click on the relevant link(s) below.

In Ohio:

  • For Hamilton County  … Click Here and Here
  • For Clermont County … Click Here and Here
  • For Warren County … Click Here and Here
  • For Butler County … Click Here, Here, and Here

In Kentucky:

  • Property taxes are due in September (City) and October (County) and therefore they cannot be pre-paid.

Your specific situation may differ.  If you are subject to an Alternative Minimum Tax, for example, this pre-payment may not benefit you.

For more information on this and other federal income tax questions, contact Isaac T. Heintz at (513) 943-6654 or Eli Kraft-Jacobs at (513)797-2853.

Attorney | ‭513-943-6655 | [email protected] | + posts