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IRS Sets Conditions for Deducting 2018 Property Taxes This Year

  • Prepayments hinge on property assessments by local officials
  • Scramble in high-tax states to avoid limits on deductions
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The Winners and Losers in the Tax Overhaul Bill
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U.S. taxpayers can deduct their 2018 state and local property taxes on their 2017 returns if they pay those tax bills before the end of the year -- and only if the taxes were assessed before 2018, according to the Internal Revenue Service.

The federal authority’s guidance reflects an effort to address some of the confusion triggered by the tax overhaul signed by President Donald Trump last week and the scramble in the high-tax states to avoid some of its provisions.