New tax code spurs rush to pre-pay real property taxes

The rush is on to save money on deductions before the new tax code goes into effect.

The Internal Revenue Service issued an advisory to tax professionals on Wednesday.

The advisory said pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.

The property must have been assessed prior to 2018.

Gregory Gandrud of Gandrud Financial Services Corporation said there are some smart year-end moves people can make before the weekend like pre-paying property taxes.

Arthur Swalley of Arlington Financial Advisors said, “It is really your second payment.”

The first payment was due December 10, the second is due April 10.

Some people may find their tax office closed for the holidays, but that shouldn’t deter taxpayers.

“For people who want to pay pre-pay taxes now I recommend they go online to the website for county treasurer, tax collector,” said Gandrud.

He said it is also legal to mail a check with this year’s date and postmark.

Financial pros are looking for ways to help their clients save money before deductions are changed under the new tax code.