In trying to get educated on the possible tax changes that MAY occur, we stumbled across one idea that we felt worth sharing.
Please do not take this as a forecast for what tax changes MAY occur, no one knows, but in this tax seminar the speaker brought up an interesting strategy, that if in the correct circumstance, may be worth a try.
If you do not intend to itemize i.e. Use the standard deduction in 2020, it may be worth paying your property tax for 2020 in 2021 on the possible chance a different tax rule MAY occur in 2021.
Again, no one knows for sure on tax changes, only a very low downside technique since not itemizing in 2020 essentially nullifies the use of your property tax in this tax year. Here is a reference to the strategy, before recent tax laws phased this technique out!
Sorry for the heavy on a Friday… we just caught wind of this and wanted to spread the word as fast as possible!
Have a Good Friday and super weekend!
Have a Great “Possible Tax Savings” Technique Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth