Get the Jump on Fourth Quarter Taxes Before Year End
Both proposals would almost double the standard deduction to $12,000 (single) and $24,000 (married) from the current $6,350 and $12,700, respectively. The result: many taxpayers who have typically itemized in the past will start taking the standard deduction in 2018. In addition, state income taxes and sales taxes would no longer be deductible, and real estate taxes would be limited to $10,000.
So it may make sense to pay your 4th quarter state income tax estimate(s) and all or a portion of your real estate taxes before year-end.
For those who will still be itemizing next year, prepaying real estate taxes over the $10,000 would provide a deduction in 2017 which will likely be lost in 2018. For those who will likely no longer be itemizing,
prepaying all of your real estate taxes in 2017 would give you a deduction this year for which you would get no additional benefit in 2018.