DENVER — Looking to duck a $10,000 cap on state and local tax deductions, Colorado residents rushed to pre-pay their 2018 property taxes.
The Denver Post reports more than $195 million in prepaid property taxes flowed in to county treasurers across the state before the start of the new year.
Under the Republican-sponsored tax bill, signed by President Donald Trump last month, the deduction taxpayers can take for the state and local taxes they pay was capped at $10,000 starting this past Monday.
The question is whether the IRS will allow taxpayers to write off those early payments on their 2017 returns. The agency issued a statement indicating those people could write off payments made only in 2017 if their property taxes were officially assessed before the end of the year.
Information from: The Denver Post, http://www.denverpost.com