Thinking of trying to prepay property taxes? You may want to hold off
If you're confused about how the new GOP tax plan will impact your taxes, you aren't alone.
Homeowners across the country are reportedly rushing to prepay their property taxes before 2018.
However, a local tax expert in Anchorage said there wouldn't be any benefit in prepaying.
Evelyna Kuhr, managing member of Balanced CPAs, said that's because property taxes – that haven't been assessed before next year – won't be deductible this year.
"If they wanna do it so the Municipality [of Anchorage] has a little more money, they could," Kuhr said. "But it's not gonna do them any tax benefit."
On the other hand, there are some things people can do to accelerate their deductions, according to Kuhr.
"If people already are itemizing, then what they could do is prepay some charitable contributions they were planning on giving in 2018," she explained. "The benefit would be higher this year, because tax rates in 2018 have gone down. And because the standard deduction has gone up, you'll get a better benefit this year."
The majority of business owners will benefit from the changes, Kuhr added.
"It's gonna be really good for them," she said. "They're gonna save money, because there's a good deduction for them that they can get – not everybody, but a lot of business owners."