Prepaying 2018 property taxes under AMT

Prepaying 2018 property taxes under AMT


I am in one of the places where my FY 2017/2018 property tax assessment/bill has already happened, so theoretically, I could benefit by prepaying. But, I have been subject to AMT almost every year for the past 10, so I’m assuming there’s no benefit to me prepaying. Anyone else in this situation and come to the same conclusion?


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I am also subject to the dreaded AMT (Alternative Minimum Tax). My accountant ran various scenarios involving prepayment of property taxes and the conclusion was that there was minimal to no benefit.

However, your mileage may vary, and each tax situation is unique.


Ran up an estimate of my numbers using 2016’s TurboTax. Stuck in AMT, so no reason to prepay. (Not much reason not to either, but there’s a small chance they could revise the bill next year. Also, hassle.)

However, it may still be worthwhile to prepay your January mortgage payment, if there’s a chance you won’t itemize at all next year. Even if you do itemize, your marginal rate will likely be lower, so there’s a small advantage to taking the extra month’s interest deduction this year. (Unless you expect to make a lot more in 2018 than in 2017, and you know you’ll still itemize in the new tax code.)


I came to the same conclusion that you did-- that the AMT would negate the benefit of prepaying my property taxes. I made an additional charitable contribution instead.