I was wondering whether its better to pay property tax every year and get a write off every year, or to pay it for two years every other year and get no write off one year but a large write off the second year.
In other words, since I paid last years property tax in Dec 2009, is there any advantage to not paying this December and paying 2010 taxes in January 2011 and then paying 2011 taxes in December 2011. I would get no write off this year but a large one in 2011.
I went back and looked at my 2009 TurboTax. I owed $792 after filing last year's returns. I changed 2009 property tax line to zero and it showed that I would've owed $1342. Then I changed the property tax line to double what it really was and I wouldve gotten a refund of $295.
So is it this simple?
Pay property tax each year:
2009- I owe $792
2010- I owe $792
Total $1584
Pay property tax every other year
2009- I owe $1342
2010- I get a $295 refund
Total $1047
Savings of $537 every 2 years.
I assume that it has to do with pushing me further over the standard deduction and making more of my itemized deductions actually worth something? Does this sound correct?
In other words, since I paid last years property tax in Dec 2009, is there any advantage to not paying this December and paying 2010 taxes in January 2011 and then paying 2011 taxes in December 2011. I would get no write off this year but a large one in 2011.
I went back and looked at my 2009 TurboTax. I owed $792 after filing last year's returns. I changed 2009 property tax line to zero and it showed that I would've owed $1342. Then I changed the property tax line to double what it really was and I wouldve gotten a refund of $295.
So is it this simple?
Pay property tax each year:
2009- I owe $792
2010- I owe $792
Total $1584
Pay property tax every other year
2009- I owe $1342
2010- I get a $295 refund
Total $1047
Savings of $537 every 2 years.
I assume that it has to do with pushing me further over the standard deduction and making more of my itemized deductions actually worth something? Does this sound correct?