Tax Changes Have Some Homeowners Scrambling

Those in high-tax states might want to prepay their 2018 taxes this year
By John Johnson,  Newser Staff
Posted Dec 20, 2017 1:02 PM CST
House Speaker Paul Ryan, center, leaves the House Chamber after voting on the Republican tax bill Tuesday.   (AP Photo/Jacquelyn Martin)
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(Newser) – Congress is done with its tax overhaul and President Trump is thrilled to be able to sign it into law. Now comes the real-world consequences for payroll companies, accountants, citizens, and even the IRS, as the scramble begins to put the wide-ranging new rules into effect in a mere 12 days, reports Politico. One tangible example: Some homeowners in high-tax states such as New York and New Jersey are trying to figure out whether they can prepay their 2018 property taxes in the current calendar year, to avoid sharp new limits in deductions under the tax plan.

  • Complicated: It could actually take years for the Treasury Department and the IRS to write the new rules for the most complicated changes, such as taxes on offshore business profits and pass-through businesses, per Politico.
  • Your taxes: The Washington Post has an interactive graphic allowing you to plug in basics including including income, location, and the amount typically itemized to see the plan's effect on your bottom line. (It notes, however, that many of the cuts affecting the middle class are not permanent.) Money looks at the impact under eight different scenarios, from wealthy homeowners in Manhattan to renters in Milwaukee.

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