BMW X5
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read

Post Reply
 
Thread Tools Search this Thread
      12-28-2017, 11:37 AM   #1
Habs11
Private First Class
United_States
160
Rep
181
Posts

Drives: 2015 X5 35i
Join Date: May 2017
Location: Rochester, NY

iTrader: (0)

PrePay Taxes

Anyone else going to prepay their 2018 taxes today/tomorrow/over weekend in anticipation of taking advantage of the current/new tax law?

My town is able to receive payments only Friday (12/29) unless mailed with postage marked in 2017.

This isn't a debate on the new tax law just a thread to poke interest because it may save some folks $$$. There are many different scenarios - in my case I itemize but won't next year so I'm throwing deductions all around.
Appreciate 0
      12-28-2017, 11:38 AM   #2
RickFLM4
Brigadier General
RickFLM4's Avatar
United_States
10878
Rep
4,816
Posts

Drives: M4
Join Date: Jul 2015
Location: PB County, FL

iTrader: (0)

I believe they need to be assessed not just prepaid to take a deduction, so I suggest checking into that aspect before prepaying.
__________________
Current: 2018 SO/SS F83 ZCP
Gone: 2015 SO/SO F82
Appreciate 1
Lups11819.50
      12-28-2017, 12:25 PM   #3
Habs11
Private First Class
United_States
160
Rep
181
Posts

Drives: 2015 X5 35i
Join Date: May 2017
Location: Rochester, NY

iTrader: (0)

Quote:
Originally Posted by RickFLM4 View Post
I believe they need to be assessed not just prepaid to take a deduction, so I suggest checking into that aspect before prepaying.
Our property tax bills are usually created in January - the local gov's just expedited the timing because the work had already been done (assessments and tax levy)
Appreciate 0
      12-28-2017, 12:35 PM   #4
paimon.soror
Captain
paimon.soror's Avatar
United_States
624
Rep
958
Posts

Drives: 2016 F36 435x MSport
Join Date: Oct 2017
Location: Hartford, CT

iTrader: (3)

Garage List
Same here, except i just found out that my bank's closing on 2017 taxes was actually yesterday (i have my property tax escrowed).
__________________
2010 Mazda RX8 - Sold (11/17)
2016 BMW 435xi GC - Current
Appreciate 0
      12-28-2017, 12:35 PM   #5
rad doc
Lieutenant
252
Rep
513
Posts

Drives: 1M AW loaded
Join Date: May 2011
Location: texas

iTrader: (0)

https://www.msn.com/en-us/news/us/ir...b6u?li=BBnb7Kz
Appreciate 0
      12-28-2017, 12:38 PM   #6
RickFLM4
Brigadier General
RickFLM4's Avatar
United_States
10878
Rep
4,816
Posts

Drives: M4
Join Date: Jul 2015
Location: PB County, FL

iTrader: (0)

Quote:
Originally Posted by Habs11 View Post
Quote:
Originally Posted by RickFLM4 View Post
I believe they need to be assessed not just prepaid to take a deduction, so I suggest checking into that aspect before prepaying.
Our property tax bills are usually created in January - the local gov's just expedited the timing because the work had already been done (assessments and tax levy)
Ok that's good. Not every jurisdiction is doing so.
__________________
Current: 2018 SO/SS F83 ZCP
Gone: 2015 SO/SO F82
Appreciate 0
      12-28-2017, 12:40 PM   #7
paimon.soror
Captain
paimon.soror's Avatar
United_States
624
Rep
958
Posts

Drives: 2016 F36 435x MSport
Join Date: Oct 2017
Location: Hartford, CT

iTrader: (3)

Garage List
Quote:
Originally Posted by rad doc View Post
Yep again key here being that assessments needed to be made. Typically if you received a bill for January, thats all set. The article above really impacts people who are prepaying taxes based on last years assessments.
__________________
2010 Mazda RX8 - Sold (11/17)
2016 BMW 435xi GC - Current
Appreciate 0
      12-28-2017, 03:00 PM   #8
kscarrol
Brigadier General
kscarrol's Avatar
United_States
8776
Rep
4,105
Posts

Drives: 2021 X3 M40i, 1974 2002 Tii
Join Date: Jun 2010
Location: Greenville, SC

iTrader: (0)

Bills were available on the 26th, paid yesterday.
__________________
2021 X3 M40i
1974 2002tii, Inka, 5 sp manual
BMWCCA # 327475
Appreciate 0
      12-28-2017, 05:43 PM   #9
Maestro
Major
1001
Rep
1,268
Posts

Drives: 2007 335i Sedan, 2021 X3
Join Date: Nov 2006
Location: Philadelphia

iTrader: (0)

In PA you're not allowed to prepay, state law prohibits local county and school property taxes from being collected early and before the bill is sent. Just just read that NY and NJ pass a rule to allow prepay otherwise they had the same issue as PA.

I figure out the standard $24K deductions along with the $10k property and interests tax limit is just a little less than what I have itemized in past yrs. I have been writing of less and less mortgage interest since I'm nearing the end of the loan. The $24k in the coming years will help.
Appreciate 0
      12-28-2017, 06:06 PM   #10
jpdchicago
Major
United_States
1358
Rep
1,394
Posts

Drives: M4 CSL, X3MC
Join Date: Feb 2016
Location: Chicago area

iTrader: (0)

I prepaid mine on line last week.
Appreciate 0
      12-28-2017, 09:10 PM   #11
bimmer456
Major General
2938
Rep
5,983
Posts

Drives: 340i
Join Date: Nov 2016
Location: Pasadena, CA

iTrader: (0)

So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?
Appreciate 0
      12-28-2017, 09:22 PM   #12
RickFLM4
Brigadier General
RickFLM4's Avatar
United_States
10878
Rep
4,816
Posts

Drives: M4
Join Date: Jul 2015
Location: PB County, FL

iTrader: (0)

Quote:
Originally Posted by bimmer456 View Post
So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?
People should analyze all pieces of the changes together, including AMT, based on their individual circumstances. Try to apply new rules to last year's return. Not difficult and gives you a good idea of impact.
__________________
Current: 2018 SO/SS F83 ZCP
Gone: 2015 SO/SO F82
Appreciate 0
      12-28-2017, 09:40 PM   #13
bimmer456
Major General
2938
Rep
5,983
Posts

Drives: 340i
Join Date: Nov 2016
Location: Pasadena, CA

iTrader: (0)

The corporate tax cut is supposed to trickle down to us in the form of higher wages. Maybe they should make that mandatory if corporations want a tax cut. Lower taxes and raise the minimum and average wages.
Appreciate 0
      12-28-2017, 11:07 PM   #14
BayMoWe335
Colonel
1173
Rep
2,132
Posts

Drives: 2010 E92 335i 6MT
Join Date: Aug 2009
Location: US

iTrader: (0)

Quote:
Originally Posted by bimmer456 View Post
The corporate tax cut is supposed to trickle down to us in the form of higher wages. Maybe they should make that mandatory if corporations want a tax cut. Lower taxes and raise the minimum and average wages.
Raising minimum wage doesn’t work. Econ 101.
Appreciate 0
      12-28-2017, 11:11 PM   #15
pz619
Brigadier General
3274
Rep
3,254
Posts

Drives: F87 M2C 6MT, Tesla 3
Join Date: Oct 2013
Location: San Diego

iTrader: (1)

Yep I’m preparing tomorrow. I just learned of this yesterday.
Appreciate 0
      12-28-2017, 11:12 PM   #16
pz619
Brigadier General
3274
Rep
3,254
Posts

Drives: F87 M2C 6MT, Tesla 3
Join Date: Oct 2013
Location: San Diego

iTrader: (1)

Quote:
Originally Posted by bimmer456 View Post
The corporate tax cut is supposed to trickle down to us in the form of higher wages.
It won’t and sure hope you aren’t counting on this.
Appreciate 0
      12-28-2017, 11:26 PM   #17
mikeyymonster
Major
mikeyymonster's Avatar
United_States
526
Rep
1,078
Posts

Drives: 2021 M2C
Join Date: Apr 2014
Location: California

iTrader: (6)

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017
Appreciate 0
      12-28-2017, 11:26 PM   #18
bimmer456
Major General
2938
Rep
5,983
Posts

Drives: 340i
Join Date: Nov 2016
Location: Pasadena, CA

iTrader: (0)

Quote:
Originally Posted by pz619 View Post
Quote:
Originally Posted by bimmer456 View Post
The corporate tax cut is supposed to trickle down to us in the form of higher wages.
It won’t and sure hope you aren’t counting on this.
That was my point with the rest of my comment.
Appreciate 1
pz6193274.00
      12-29-2017, 03:49 PM   #19
Maestro
Major
1001
Rep
1,268
Posts

Drives: 2007 335i Sedan, 2021 X3
Join Date: Nov 2006
Location: Philadelphia

iTrader: (0)

Quote:
Originally Posted by bimmer456 View Post
So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?
Most people never deducted their state taxes. Two examples, NY only 40% of the people itemized, so 60% never saw the benefit, in California only 20% itemized. The two states with the highest personal income tax never deducted them on their taxes.

This information came from the IRS and was shared this week in the news. This is the reason the Fed got rid this deduction, most people do not even bother using them.

All I know is I'll now pay less on capital gains and dividends, the feds upped the limits at witch you start paid this tax. If you make less then $75k you do not have to pay capital gains.
Appreciate 0
      12-29-2017, 03:55 PM   #20
Maestro
Major
1001
Rep
1,268
Posts

Drives: 2007 335i Sedan, 2021 X3
Join Date: Nov 2006
Location: Philadelphia

iTrader: (0)

Quote:
Originally Posted by bimmer456 View Post
The corporate tax cut is supposed to trickle down to us in the form of higher wages. Maybe they should make that mandatory if corporations want a tax cut. Lower taxes and raise the minimum and average wages.
If you have 401k or other retirement investments as company profits go is you'll investments will go up. Part of the reason the market did so well this year, was this new taxes. I saw some significant increases this year. So as companies do better I'm doing better. BTW, I do not invest in mutual funds, I only invest in specific companies. So my gains were not watered down by poor performers you'll find in most mutual funds.
Appreciate 0
      12-29-2017, 04:00 PM   #21
bimmer456
Major General
2938
Rep
5,983
Posts

Drives: 340i
Join Date: Nov 2016
Location: Pasadena, CA

iTrader: (0)

Quote:
Originally Posted by Maestro View Post
If you have 401k or other retirement investments as company profits go is you'll investments will go up. Part of the reason the market did so well this year, was this new taxes. I saw some significant increases this year. So as companies do better I'm doing better. BTW, I do not invest in mutual funds, I only invest in specific companies. So my gains were not watered down by poor performers you'll find in most mutual funds.
Same here, I've been saying this in the forums, forget about mutual funds just buy individual stocks of high performing corporations. I've been making a killing, it's great, hopefully the corporate tax cuts will help shareholders and we should all become shareholders as wages are likely only going up for the few and not the many.
Appreciate 0
      12-31-2017, 09:32 PM   #22
Ross61
Private
73
Rep
71
Posts

Drives: 2004 GTO (soon to be an M4)
Join Date: Sep 2014
Location: A Place that Begins with "W"

iTrader: (0)

If you are living in a state where it matters - highly recommend you do everything possible to change out the official elected to run your state and the manner which your money is spent (and stolen from you by said "officials."
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 07:49 AM.




xbimmers
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST