Daily Tax Update - December 27, 2017: IRS Guidance Regarding Property Taxes

IRS Guidance Regarding Property Taxes:  Today the Internal Revenue Service released guidance regarding the deductibility of real property taxes. The IRS said that, as a general matter, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment this year and whether the taxes are assessed prior to 2018. The IRS stated, “A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.”