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
Management firm.
Gary you were actually perfect correct ..under current tax law there’s a maximum of 10,000 so paying extra won’t help when I’m alluding to is the fact that maybe that tax law will be changed next year and if we do put two of them in the same year it will be allowed. Only do this if we are filing this year-2020 using a standard non-itemizing return! If you think we are going to itemize we don’t want to do this!
John,I may be misunderstanding this strategy and if so, I apologize. However, when I tried to pay two property tax bills in a single year and therefore, qualify for itemization, my CPA advised that would be disallowed. Was my CPA incorrect?GSA Sent from Mail for Windows 10 From: $treet-¢entsSent: Friday, December 11, 2020 10:36 AMTo: althoffg@gmail.comSubject: [New post] Possible End of Year Property Tax Strategy, Only IF You Meet Certain Criteria ⦠Friday John Kvale CFA, CFP posted: " 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 b"