Elmira, N.Y. (WENY) - Governor Andrew Cuomo has issued an executive order in response to the federal tax overhaul.
The federal tax bill will cap the property tax deduction at $10,000. Governor Cuomo's executive order allows residents to prepay their 2018 property taxes before the end of the year, allowing residents to avoid a cap on their deductions.
Paul Hornbuckle, the Vice President of Tax and Business Services at Valicenti Advisory Services, says there is a potential upside to prepaying the 2018 property taxes for some. He says, "Individuals can see benefits if they are still able to itemize their deductions in 2017, they'll take it as a property tax deduction on their tax return."
However, there are some caveats. Hornbuckle says, "If you are subject to alternative minimum tax, then it will not help you at all. In fact it may even boost your federal tax. If you are paying your taxes and your mortgage through escrow accounts, you are going to have to work something out with your bank."
Because this bill affects everyone differently, Hornbuckle advises you to seek professional help before prepaying your 2018 property taxes. He says, "I would absolutely tell them to see their tax adviser because every case is individual."
To prepay your 2018 property taxes, you can either postmark and mail your payments to the appropriate municipal collection agent by December 31st, or present your payment in person by Friday December 29th.