Here is the first in a special tax savings series heading into year-end.
Clumping Your Property Taxes
If you have limited deductions, review your property taxes and see if it makes sense to clump two years into one –
If you have been using standard deductions (not itemizing) see if clumping two property tax payments into one year will get you over the standard deduction – if it does, any extra dollars over your standard deduction will be a tax savings you otherwise would not have received.
Pushing Your Property Taxes Out a Year
If you have had a super year and may face a phase out in deductions due to a high income this year (at certain income levels you lose your deductions) you may want to consider pushing your property taxes into another year. If your deductions are partially or completely phased out, you may receive minimal tax benefit with ANY deductions.
There are a lot of moving parts in these situations, if you have a question give us a call — these are certainly not a recommendation to do either without further review.
Have a Great Tax Savings Wednesday!
John A. Kvale CFA, CFP
8222 Douglas Ave # 590
Dallas, TX 75225