Apr 16, 2018
Prepayment of real estate taxes is deductible for the 2017 federal tax return
Following the passage of the Tax Cuts and Jobs Act in December of 2017, many Illinois homeowners prepaid their real estate taxes at the end of the 2017 calendar year instead of what would otherwise be due in the ordinary course in 2018. Although the Internal Revenue Service issued an advisory stating that prepayment of real estate taxes would not be deductible, this no longer a concern for Illinois homeowners who prepaid their real estate taxes on or before Dec. 31, 2017.
We have obtained a letter from the Department of the Treasury to the Honorable Peter J. Roskam advising that Illinois taxpayers who prepaid property taxes in 2017 equal or less than their 2018 tax will be allowed a deduction on their 2017 federal tax return.
This is good news for the taxpayers of the State of Illinois.
Contact your Chuhak & Tecson attorney to obtain a copy of this letter.
This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.
Client alert authored by: Edwin I. Josephson, Principal