IRS Provides Info On Pre Paying Taxes In NY

Despite conflicting reports, the IRS ruled this week that New Yorkers wishing to prepay their property taxes can do so if they get a bill from their local municipality before year’s end.

New York Gov. Andrew Cuomo has been outspoken about the controversial tax law signed by President Donald Trump.

New York Gov. Andrew Cuomo has been outspoken about the controversial tax law signed by President Donald Trump.

Photo Credit: File

Last week, President Donald Trump signed a GOP tax law that has come under fire by politicians, namely New York Gov. Andrew Cuomo, who has vowed to fight the bill, going so far as to issue an executive order allowing local governments in the state to issue tax warrants for 2018 tax payments.

The prepayment announcement has led to lines of hundreds of local residents at town and village halls, seeking to take advantage before the GOP tax bill takes effect, which includes a $10,000 cap on state and local tax deductions in 2018.

According to the IRS, "in general, 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 in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed."

Residents will have until Dec. 31 to file, which has sent local municipalities in a frenzy as they deal with those seeking tax warrants.

The Republican-led tax plan was designed to hurt Democratic states and reward Republicans ones, Cuomo said. “It’s taking from the blue to pay red,” he said. “It’s targeted, unequal. It is designed to hurt us long-term from an economic competitive point of view.”

According to a report posted Business Insider, Cuomo has considered potential legal challenges against Trump. He is reportedly targeting SALT deductions, which allow high-income taxpayers to benefit from an unlimited deduction.

“This partisan tax bill pillages blue states to finance cuts for red states,” Cuomo wrote on Twitter. “This is partisan politics over any semblance of good government.”

“It is shocking how little the governor and his state budget director actually know about tax collection in Westchester,” Westchester County Executive Rob Astorino said earlier this week. “They are clearly misinformed. To peddle such misinformation is not only political pandering, but irresponsible. Let’s set the record straight, governor. Just the two of us. What do you say?”

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