WILLIAMSVILLE, N.Y. (WIVB) – Homeowners in Western New York are rushing to soften the anticipated blow from The President’s federal tax bill.
Friday, Governor Andrew Cuomo signed an executive order that suspends any law that could block New York residents from next year’s property taxes early.
But the deadline is fast approaching.
Now, taxpayers will need to do some quick math to find out if making the advanced payments is a wise move for them.
They also would have to have the cash on hand to pay thousands of dollars owed on unknown property tax levies.
With just three business days left in the year, tax experts we spoke with advise, if you want to do this, you need to act fast.
The federal bill puts a $10 thousand dollar cap on deductions of state and local income, sales and property taxes.
Mark Tronconi, Tax Partner, with Tronconi, Segarra & Associates explains what the Governor’s plan does. he said, “What it does is, it allows taxpayers to be able to take a deduction for their property taxes this year, because with the changes in the federal level, they may not get the benefit of the deduction next year.”
But experts with Tronconi says proving to do so, might pose quite a challenge. Especially on such a tight deadline and this time of year. “It’s a tough time after the holidays, having that cash flow to actually do that.”
The executive order authorizes the towns to collect through December 29th, the last business day of the year.
But first, each county has to approve. Tom Mazurek, Sstate and Local Tax Principle with Tronconi, Segarra & Associates said, “The county has to issue a tax warrant before the towns can go out and fix the amount of tax due.”
Here’s what tax experts recommend you do:
First, find out whether your county will be issuing a tax warrant on the executive action. Chautauqua, Erie and Niagara Counties plan to do so.
Then, reach out to your town and village and see what their policies are about paying in person and online.
Depending on your town, be prepared to call back a few times to get a straight answer, towns are being flooded with calls right now.
The town will have your estimate, based on last year’s taxes.
We’ve also learned Chautauqua County will accept prepayments.
There is still some doubt whether the IRS will accept the deduction.
They’ve already limited this by saying you cant prepay your 2018 income taxes.
Also, if you’re making a charitable contribution, you might want to do so before the end of the year, to make sure you get the deduction in 2017.