This is the time of year that most municipalities ask for their property tax payment… In many cases you have the option to pay in the current year (December 2016) or next year (January 2017).
To Clump or Not to Clump
Big or Small Income Year
Before just paying those property taxes as you usually do, think for a moment if you have had an extremely good (high income) or low income year. If either of these fit your situation it may make sense to defer your property taxes and clump them into one year.
Standard Deduction
If your standard deduction is greater than your tax write offs, check to see if pushing two property tax payments into one year will get you over the standard deduction.
Heavy or Light Charitable Year
Just as a high or low income year, some years we may find that we have given more to charity than others. Step back a moment and see how your property tax payment will affect your total tax write offs. It may make sense to clump.
This is by no means a recommendation to clump or not as there are a lot of moving parts with this strategy. We are only asking you to think about your situation and if any may apply. See your tax professional before making a move!
Contact us if you have any questions!
Have a Great Friday and weekend… sorry for the heavy post on a Friday but the year is almost gone and we wanted to get our tax strategies to you!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com