![]() To prepay or not to prepay state and local taxes? That's been the burning question over the past week. With tax reform now law, taxpayers are clamoring to take advantage of tax planning strategies (like these 10 Relatively Stress-Free Year-End Moves To Make To Save On Taxes After Tax Reform). But will they work? The Internal Revenue Service (IRS) now has an answer as to whether it might accept prepayment as a tax strategy - and not surprisingly, it's maybe. Here's what you need to know about the prepayment of state and local taxes. Typically, those taxes are deducted on a Schedule A. Beginning in 2018, deductions for state and local sales, income, and property taxes remain deductible but are limited: The amount that you can deduct for all state and local sales, income, and property taxes may not exceed $10,000 ($5,000 for married taxpayers filing separately). One of the ways to "beat" the cap in 2018 is to prepay your taxes in 2017. With that in mind, under the new law, Congress specifically prohibited pre-payments for income tax. Amounts paid in 2017 for 2018 state or local income taxes will be treated as paid in 2018. But Congress did not impose a similar restriction on property taxes. Many tax professionals, including me, have suggested that prepaying real estate taxes should be allowed in some circumstances. The IRS, in response to "a number of questions from the tax community concerning the deductibility of prepaid real property taxes" agrees and has issued some official guidance. As part of IR-2017-210: IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017, the IRS declared that whether the deduction is allowed "depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018." That's consistent, so far as I can tell, with their prior treatment of prepayments. By way of additional clarification, a prepayment of "anticipated real property taxes that have not been assessed prior to 2018" would not be deductible in 2017. That is also consistent with their prior treatment of prepayments. So who decides whether those taxes will be assessed prior to 2018? The respective state or local authorities. As I noted before, the City of Philadelphia (which is also a county - fun trivia if you didn't know) typically issues assessments for the new year in December of the prior year. So, 2018 bills should be in mailboxes now. Under the IRS guidance, those should be deductible in 2017 if paid in 2017. And, on December 22, 2017, Gov. Cuomo of New York signed an Executive Order authorizing local governments "to immediately issue warrants to levy property taxes by the end of the year." Assuming those bills go out as intended, they should also be deductible in 2017 if paid in 2017. By way of additional explanation, IRS offers the following as an example of a deductible prepayment: Assume County A assesses property tax on July 1, 2017, for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return. However, there are limitations. IRS also offered the following as an example of a nondeductible prepayment: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018. Get the difference? A prepayment on its own isn't enough: Taxes must be assessed in order to claim the deduction for the prepayment. Even if you can deduct the prepayment, you may want to ask your tax professional whether it makes good tax sense to do so. Remember, there may not be a clear advantage to prepayment - and if you prepay in 2017 for 2018, you can't claim the deduction in 2018 unless you pre-pay the next year. And don't forget about the dreaded Alternative Minimum Tax, or AMT. The AMT was not repealed under tax reform for 2018 (the exemptions were merely increased). And, more importantly, it remains "as is" for 2017. The AMT is a secondary tax put in place in the 1960s to prevent the wealthy from artificially reducing their tax bill through the use of tax preference items. If you're subject to the AMT, you have to calculate your taxes a second time, adding back in some of those tax-preference items. For example, normally, if you live in a high-tax state like New York, you can deduct your state and local taxes on your Schedule A if you itemize. For AMT purposes, however, you could lose the deduction. For more on the AMT, check out this prior article. Remember: No two taxpayers are alike. Check with your tax professional if you have questions about whether prepaying your property tax or other year-end tax strategies work for you.
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Information from Eastchester.org PARTIAL PREPAYMENT 2018 TOWN AND FIRE PROPERTY TAXES
Last week Congress passed the Tax Cut and Jobs Act. This law has changed the status of the deductibility of future local property taxes. In response, on Friday evening, Governor Cuomo signed an Executive Order allowing Towns in New York State to accept partial payments of the 2018 Town property taxes in person until the close of business on Friday, December 29, 2017, or by Sunday, December 31, 2017, if payment is made by mail. The Town of Eastchester has taken steps permitted under existing law and the Executive Order to allow our property owners to make partial real property tax payments that would ordinarily be billed in 2018. This is separate and distinct from the payment of your 2017/18 school tax second half payments which can be paid in full on or before Saturday December 30 if paid in person (received on or before Friday, December 29 if mailed or on or before Sunday, December 31 if paid online) . 2018 County taxes, Water District taxes, Sewer District taxes and School taxes are not eligible to be paid in 2017 and will be billed/collected at the usual time designated by law. This year end collection is only for Town and Fire taxes.
Any partial prepayments of 2017 real property taxes shall be estimated and therefore not deemed payment in full. Said payments are not refundable and no one making said payment shall be entitled to any accrued interest accumulation. OPTIONS FOR PAYMENT By Mail: The payment must be postmarked from the United State Post Office (not an office postal machine) in 2017. Please note that December 31st is a Sunday, so the last day to postmark your payment is Saturday December 30th Paying in person at the Receiver of Taxes Office: Thursday, December 28 8:30 AM - 4:30 PM Friday, December 29 8:00 AM - 6:00 PM Partial prepayment of 2018 Town and Fire property taxes cannot be made on-line.
12/27: Important Notice of Change: |
Santa’s coming to town! | *LIVE performance by Judy Torres |
A Board of Education regular meeting will be held on Monday, December 18 at 7:30pm in the TMS/THS library. |
Saturday, December 16: The Pipe Dream Theatre will be performing A Holly, Jolly, Jammy Christmas at 7:00 pm at The Bronxville Women's Club's Anna Lawrence Bisland 1928 House at 135 Midland Avenue. For more information, call 914-337-3252, email [email protected] , or go to the club's new website at www.bronxvillewomensclubinc.org.
Sunday, December 17: The Reformed Church of Bronxville will hold its annual holiday handbell concert at 4:00 pm. Admission is free. For more information, go to www.reformedchurch.org.
Monday, December 18: The Bronxville High School Chorus and Orchestra will perform several movements from Mozart's Requiem for senior citizens at 2:00 pm in the school's auditorium. For more information, go to www.bronxvilleschool.org or call 914-395-0500.
Tuesday, December 19: Sheila Marcotte, Westchester County legislator for District 10, will be speaking about the history of the one-room Eastchester schoolhouse at 1:30 pm at The Bronxville Women's Club's Anna Lawrence Bisland 1928 House at 135 Midland Avenue. For more information, call 914-337-3252, email [email protected], or go to the club's new website at www.bronxvillewomensclubinc.org.
We had a wonderful tree lighting ceremony on Saturday! |
UPDATED with Results: 12/12 Eastchester Fire District Election 2pm-9pm and 12/14 Board Meeting
12/8/2017
Votes were cast for the following candidates for the OFFICE OF FIRE DISTRICT COMMISSIONER for a full term of Five (5) years:
ROCHE - 619
BAKER- 361
* Affidavits - 2 Roche
Total Votes -982
Please note: the annual Eastchester Fire District election for Fire Commissioner will be held on Tuesday, December 12, 2017 between the hours of 2:00 PM and 9:00 PM. Chester Heights residents VOTE at Chester Heights Firehouse on Oregon Ave. see website for polling locations: www.eastchesterfd.com |
The candidates are Steven J. Baker (incumbent) and Thomas Roche.
EASTCHESTER FIRE DISTRICT
The meeting will be videotaped by Peter North
Board Meeting to Be Held: December 14, 2017 --7:30 PM
MEETING LOCATION: BRONXVILLE VILLAGE HALL - PUBLIC MEETING ROOM
200 PONDFIELD ROAD, BRONXVILLE, NEW YORK 10708
Agenda Items:
1) Chief Tween's Monthly Report
2) Payment of Monthly Bills
3) Fire District Election results
4) Approve Board Minutes
5) Chester Heights Restoration
Tuckahoe Union Free School District • Published 12/05/17 at 10:03 PM Bond Referendum Results Thank you for your vote! Bond Referendum Results: 411-Yes, 447-No | Dear Tuckahoe Community, Today’s Capital Project Bond Referendum for the Tuckahoe Union Free School District was defeated by a 52% margin. The $20,531,500 bond would have provided the financial resources to construct and renovate existing instructional spaces, upgrade our infrastructure, and enhance school security. As I explained during capital project information sessions, our district’s challenges will not go away with a defeated bond. Therefore, the Board of Education and administration will be working hard during the upcoming months to develop contingency plans that address our schools' needs. I will certainly provide updates as decisions are made. Very truly yours,Carl L. Albano Superintendent, Tuckahoe Schools |
If you have or know a Scout looking for an Eagle Scout project, spread the word...
There are opportunities for projects at the Marble Schoolhouse on California Road.
Contact: [email protected]
The Society which maintains this important landmark is seeking new members.
Please consider joining. For more info, Go To http://www.eastchesterhistoricalsociety.org/
We are happy to announce that the
CHCA is a New Member of the Eastchester Historical Society.
We hope to hold some future meetings there!
Eastchester Police: (914) 961-3464
![Picture](/uploads/7/1/9/4/71946681/burglar_orig.jpg)
Dec. 6, 2017: This incredibly joyous time of giving also becomes a time of taking, as scammers seem to want to capitalize on the goodwill and gift-giving of the season.
Police Chief Satriale has unfortunately dealt with the following schemes/behavior patterns in just the past few weeks.
Phone Scams
Callers identify themselves as IRS agents alerting you in a very urgent tone that there is an active IRS warrant out for you and money must be wired to clear up the warrant. Bottom line, the IRS never reaches out by phone, so immediately hang up.
Con Edison is also warning local customers not to be duped by a scam that involves a caller notifying you of a delayed or delinquent Con Ed payment. To avoid having your utilities cut off, the caller instructs you to buy a prepaid Green Dot debit card and often knows which stores in town sell them. The caller instructs you to put your “bill amount” on the card and then provide the number of the card to the caller. At the point of transfer of the card ID number, the money is gone forever. Some scammers are so sophisticated that they can even make a Con Edison number show up on your caller ID. Con Edison does not ever accept payment by Green Dot cards, so this is a red flag from the onset.
In a particularly frightening and insidious phone scam, a caller will state that a relative, usually a grandchild, has been arrested and needs money to keep his record clean. The resident is directed to purchase debit cards to post bond, pay a fine, and relay the card identification number to the caller. They are quite sophisticated and share current information about family members via trolling the Internet. As an example, grandson Peter might have posted pictures of his holiday break in Cancun, so the caller now has accurate names, dates, and locations of your family member. Always confirm the situation with the alleged family member in need of help and don’t fall for the often-used line warning you not to call the child, just get the debit cards, as your grandson doesn’t want his parents to know about his predicament.
If you receive any of these calls, please follow up with a real-time call to our police department at 914-337-0500 so we can track and act in a time-sensitive manner.
Door Scams
This scam is similar to one perpetrated last year where a “Con Ed” employee, complete with authentic-looking ID, comes to your door and offers discounts or vouchers toward your utility bill. If you agree to the new “savings” plan, the scammer would pay the account balance with a fraudulent check and tell the customer the account was paid. The customer would then check the account’s status online or by phone, see a payment posted, and pay the scammer a percentage of the payment. When the dust settles, their check bounces; you’ve given cash to the imposter and your entire Con Ed balance is still due.
Package Thefts
Because of the holiday season and the volume of Internet sales, package delivery is at an all-time high and with it, package thefts. Cars often trail UPS trucks and remove parcels from a porch before the driver has even turned the corner.
If possible:
- Ask for a tracking number. Most major shipping companies offer this service at no charge. This number allows you to track your package and notifies you when it will be delivered.
- Request a “signature delivery option.” This requires a signature when the packages are delivered and ensures they will not be left at the front door.
- Request a specific drop-off time and date when you will be home to accept packages.
- Arrange to have your packages held at the shipping service so you can pick them up.
- Ask the delivery service to leave your packages at a side or back door. An enclosed porch where packages are out of sight is also a good option.
- Have your packages delivered to your workplace.
- Have your packages delivered to the home of a relative or neighbor who will be there to accept them.
- Ask a trustworthy neighbor to keep a watchful eye out for your packages. If they’re willing, ask them to safeguard your packages until you return home.
In a new twist on the delivery scam, criminals are using stolen credit cards and, via identity theft, ordering goods – usually high-end purses and electronics – and having them delivered to totally random addresses. They are smart enough to have package tracking and hope they get to the package before you do. If not, they arrive in a UPS, USPS, or Fed Ex uniform and ask to reclaim the package delivered “in error.” Again, as a complete red flag, the USPS, UPS, and Fed Ex never send drivers back to retrieve packages delivered in error, so call our police desk immediately.
Bottom line, if anything seems remotely suspicious, do not hesitate to call the police desk. Their availability and response have already resulted in arrests.
![Picture](/uploads/7/1/9/4/71946681/editor/2017-epd-holiday-tips.png?1512760046)
December 6 at 12:20pm ·
Phone/COMPUTER Scams
The Eastchester Police Department would like to warn residents that we have received several reports recently from residents who have been scammed out of substantial amounts of money due to allowing access to their computers by predators who call and claim to be from computer tech support or other companies.
These perpetrators will sometimes tell victims that the victim is owed a refund and that the caller needs to remotely access your computer to assist with the transaction.
DO NOT ALLOW ANYONE THAT YOU ARE NOT 1000% SURE OF TO ACCESS YOUR COMPUTER!
DO NOT WIRE MONEY TO CALLERS OR PAY ANYONE IN GIFT CARDS!
THESE ARE TELL-TALE SIGNS OF SCAMS!
If you are unsure of the validity of the requests being made of you, contact a family member, trusted friend or neighbor, or the Police Department before doing anything.
Stay Safe!
EPD
(914) 961-3464
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