Income Tax 101: What the New Federal Income Tax Law Means for Alachua County Property Owners
Currently, property owners can deduct property tax payments from their federal taxable income. However, the new federal income tax law includes a $10,000 limit on property tax deductions for 2018 income taxes. Many property owners are calling and visiting our offices to ask about prepaying 2018 property taxes now.
- Property owners cannot prepay 2018 property taxes in 2017. While many financial advisors recommend prepaying 2018 property taxes now, this is not allowed in Florida. Florida law allows tax collectors to begin collecting 2018 taxes on November 1, 2018. Taxpayers who sign up for the 2018 installment plan – splitting property taxes into quarterly payments – begin paying slightly earlier, with the first installment accepted in June 2018. For more information, click here to read Florida Statute 197.333.
- Haven’t paid 2017 property taxes? Pay by December 31 to deduct your 2017 property taxes from your 2017 income taxes. In addition, property owners will receive a 3 percent discount on property tax bills paid in December. The discount drops to 2 percent in January and 1 percent in February. There is no discount for property taxes paid in March. The deadline to pay 2017 property taxes is March 31, 2018.
- Pay property taxes online. Tax collector offices are especially busy the week between Christmas and New Year’s. Avoid lines by paying 2017 property taxes online here.
*Further questions regarding the new federal income tax law should be directed to your tax adviser.