Neal Issues Statement on Pre-Payments of Property Taxes Following Consultation with IRS

December 28, 2017
Press Release

SPRINGFIELD, MA –  Ranking Member of the House Committee on Ways and Means, Richard E. Neal, issued the following statement after receiving an explanation from the IRS regarding pre-payments of property taxes under the new limitations on the state and local tax deductions.


"Last week, I sent a letter to the IRS asking for clarification on pre-payments of property taxes as it relates to the new limitations on the state and local tax deduction under federal law,” said Ranking Member Neal. “Due to constituent interest, I asked the IRS how they would apply the new law to taxpayers who are considering pre-paying their 2018 property taxes before the end of 2017. Acting Commissioner David J. Kautter responded to my inquiry today and the IRS issued an advisory with guidance.  The advisory generally provides that pre-paid real property taxes may be deductible in 2017 if assessed and paid in 2017.  As there is still a tremendous amount of uncertainty around this issue, individual taxpayers should consider visiting IRS.gov so they are aware of what options are available to them."       


A copy of the Neal letter can be found here.

A copy of the Kautter letter can be found here.

A link to the IRS advisory is here.