Find Real Estate Agents and Homes for Sale

Real Estate News --> Pennsylvania News

Prepayment of taxes to avoid Trump tax reform mostly a no-go in Pa.

So, according to news reports from several states, people have been flocking to tax collectors to pre-pay their 2018 real estate taxes, in hopes of being able to deduct them from their 2017 taxes. In Pennsylvania, however, the law doesn't allow such ...

Archived Story

By David Wenner It's a Pennsylvania law built on at least one solid plank: to prevent Pennsylvania tax collectors from pocketing 2017 taxes and using 2018 taxes to hide the theft But right now, it's also preventing many Pennsylvania property owners from cashing in on a temporary loophole that might give them a lower tax bill than they would otherwise pay under the new tax law recently passed by Congress with the approval of President Donald Trump The new law will put a $10,000 cap on the amount of local taxes, including real estate taxes, that taxpayers can deduct from their taxable income in 2018. For some taxpayers, especially those living in areas with high property and local tax rates, that could cost them serious money[The new law also increases the standard deduction, which could offset those losses for many,  or result in lower taxes overall.] So, according to news reports from several states, people have been flocking to tax collectors to pre-pay their 2018 real estate taxes, in hopes of being able to deduct them from their 2017 taxes. In Pennsylvania, however, the law doesn't allow such prepayment, according to various expertsAnd if a particular municipality or taxing body decides to try, it could set off a chain reaction of problems, and potentially run afoul of the Internal Revenue Service, which late Wednesday stated a policy that seems to narrow the possibilities for early payment Three experts interviewed by PennLive said state law essentially makes it illegal to collect 2018 taxes during 2017 "There's nothing in the tax law that allows for pre-payent," said John Gross, the treasurer for Cumberland County In much of Pennsylvania, people pay their taxes to an elected local tax collectorIn some cases, a municipality or county collects some or all local taxes Janis Creason, the treasurer for Dauphin County, said state law prevents tax collectors from collecting taxes for a new year before the old one is settledIt means that 2017 taxes will officially be settled by a mid-January deadlineThat prevents them from accepting 2018 taxes in advance of that, according to Creason and others She said that portion of that law is designed as a protection against fraud, as it would prevent a tax collector from stealing money and using new tax revenues to cover it up She said there are assorted other nuances of the law that could lead to confusion and legal problems up if a tax collecting entity decided to allow pre-payment of 2018 taxes"There are so many ripples," she said. Still, some Pennsylvania taxing entities are tryingThe City of Harrisburg said Wednesday that people can begin prepaying 2018 real estate taxes, and the city will accept payments postmarked through Dec31 But at roughly the same time, the IRS posted the notice that seemed intended to narrow the possibilities for making a prepayment that can legally be applied to 2017A Harrisburg official couldn't immediately be reached on Thursday morning to discuss what impact that stance might have Meanwhile, Creason said it's unusual to hear of people rushing to pay their taxesPeople usually try to delay. "It would be great for the county to have an [early] infusion of money," she said"I just don't see a way to do it, based on what we know." View Comments /* */ About Us PA Media Group PennLive The Patriot-News Advertise with Us Career Opportunities Contact Us Send Us a News Tip Community Rules Frequently Asked Questions Subscriptions Manage your Patriot-News Subscription e-Newsletters PennLive Sections Home News Sports PSU Football High School Sports Entertainment PaLife & Culture PaFood & Dining Opinion Business Obituaries Jobs Autos Real Estate Rentals Classifieds Find n Save Local Businesses Mobile Apps iPhone, Android Apps | Tablet Apps More on PennLive Videos Photos Weather Contests Post a Job Post a Free Classified Ad Sell your Car Sell/Rent your Home Sitemap & Search Sponsor Content Follow Us Twitter | Facebook | Instagram Registration on or use of this site constitutes acceptance of our User Agreement and Privacy Policy

Trending Pennsylvania News:

  • DEP urges testing for radon; 40 percent of Pa. homes said to exceed EPA standard
  • Fairfax County's west is still the best for commercial real estate, but the east is making a move
  • Western Pennsylvania deals of the week
  • Signs of growth in economic development
  • Doctors give new meaning to one-stop shopping
  • Just the Facts on Investors Real Estate Trust (IRET)
  • The beauty business booms: Clarins opening at King of Prussia Mall
  • Allied Properties Real Estate Investment (AP.UN) Given Outperform Rating at Scotiabank
  • Powerful group seeks to quash spot real estate assessments
  • Emmaus, PA Real Estate: Foreclosures
  • Upgrades And Downgrades For Washington Real Estate Investment Trust (NYSE:WRE)
  • Tennis pro gets 9 years in prison for defrauding investors of $3.3M
  • Real Estate Investor Jeffrey Bartos to Seek GOP Nomination for Senate Seat
  • PREIT's Proactive Moves to Counter Choppy Retail Real Estate
  • Upper Moreland-Willow Grove, PA Real Estate: Foreclosures
  • Philly mag writes about Pittsburgh as the one city in PA poised to crush the 21st Century
  • Trump to mark his first 100 days with a rally in Pennsylvania
  • Rezonings and Text Amendments in Pennsylvania: Procedural and Substantive Considerations
  • Vastgood, Prudential JV Acquire 7 Shopping Centers for $104M
  • Post Bros. Close on Center City Retail Properties