Prepay 2018 DVC property tax because of 2018 tax law changes

[jekjones1558]

Is the statement we received considered an appropriate bill for paying 2018 DVC property taxes now so they can be included on 2017 IRS itemized deductions? I looked for threads on this and couldn’t find one. Sorry if this is a redundant thread or in the wrong forum.

 

[supersnoop]

Yes.

 

[jekjones1558]

Yes.

Thanks! I am on monthly dues. Do you think I can just prepay the amount listed as taxes? I'd rather not fork over the whole dues amount now if I can help it. We already have prepaid our 2018 home property taxes so the checkbook balance is looking pretty sick.

 

[tjkraz]

Not a tax pro but from what I'm hearing, you can only deduct 2018 taxes paid in '17 if the actual assessment has been calculated. You can't take a deduction for pre-payments based upon estimates.

The 2018 DVC tax figures we have now are only estimates. The final assessments aren't calculated until the middle of the year.

 

[jekjones1558]

Not a tax pro but from what I'm hearing, you can only deduct 2018 taxes paid in '17 if the actual assessment has been calculated. You can't take a deduction for pre-payments based upon estimates.

The 2018 DVC tax figures we have now are only estimates. The final assessments aren't calculated until the middle of the year.

I kind of agree but the messy part is that we are actually expected to PAY the taxes by Jan. 15 based on the estimate only.

 

[bobbiwoz]

I kind of agree but the messy part is that we are actually expected to PAY the taxes by Jan. 15 based on the estimate only.

Agree.

 

[tjkraz]

I kind of agree but the messy part is that we are actually expected to PAY the taxes by Jan. 15 based on the estimate only.

True, but it is reconciled by the end of the year with actual figures provided well before tax filing deadlines.

The due date is dictated by DVC, who places the funds into an escrow account pending the final assessment. Since neither the assessment nor the payment for 2018 will occur in 2017, I doubt it qualifies for a deduction. I guess there's no harm in paying, pending any final guidance by the IRS. But tread lightly when preparing those returns as this is likely to come under great scrutiny this year. That's my two cents.

 

[Turn the Page]

We are planning to buy into DVC in the next couple of years and are currently in the research phase of the process to make sure we do what is best for our family.

This thread is confusing me somewhat. I have never seen anything to indicate there are property taxes on the DVC interest though if I had thought about it I probably would have eventually surmised that if we have a deed in our name for a real estate interest then there likely would be property taxes on it. I am aware of annual dues of course but are property taxes in addition to the dues or are they rolled into the dues?

 

[miTnosnhoJ]

Property taxes are part of the dues. Roughly half. You can currently deduct that amount if you itemize.

 

[Turn the Page]

Property taxes are part of the dues. Roughly half. You can currently deduct that amount if you itemize.

I see, thank you. That makes sense.

 

[DebbieB]

I just got my BWV statement:

Per point:

Operating 3.9923
Reserves 1.0996
2018 Estimated Taxes 1.4977

2017 Actual Taxes - 1.3788 - this is what I will deduct. I have 250 points, it comes to $344.70.

 

[SL6827]

So next year you can't deduct any property taxes or just up to ten grand?

 

[jekjones1558]

So next year you can't deduct any property taxes or just up to ten grand?

Next year we can only deduct $10,000 total for state income tax and property tax.

 

[SL6827]

Next year we can only deduct $10,000 total for state income tax and property tax.

Ok, so our property tax is around $2,000, so it wouldn't effect us, right?

 

[jekjones1558]

Ok, so our property tax is around $2,000, so it wouldn't effect us, right?

Depends on whether or not you pay state income tax that would put you over the $10,000 total. Also, if you don't itemize deductions it won't matter one way or the other.

 

[Best Aunt]

Higher standard deduction might mean you don't take any itemized deductions next year.

 

[DenLo]

Absolutely not because the DVC bill it is an estimate only. And the law requires that it has to be assessed in 2017 and the 2018 taxes have not been assessed. The assessment will occur in September 2018 or so.

And the property taxes are not half of the dues. In 2018 estimate for BLT our dues are 5.9226 and ad valorem taxes account for $1.6905, which is way less than half of the dues.

 

[MooseBucks]

Higher standard deduction might mean you don't take any itemized deductions next year.

This is important to remember....many folks that used to itemize will no longer with the standard deduction being doubled.

 

[CatNipRules]

Property taxes are part of the dues. Roughly half. You can currently deduct that amount if you itemize.

Ahhhh.. Okay. I was worried that there were additional taxes due besides the membership fees. thanks for clearing that up. I don't itemize so it doesn't apply to me.