Prepayment of 2018 Taxes

The IRS released an advisory (IR-2017-210) on December 27, 2017 to clarify whether prepaid real property taxes for 2018 would be deductible in 2017. An excerpt of the advisory states "a prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017."

North Carolina General Statute 105-285(d) directs the value of real property shall be determined as of January 1 of the years prescribed by GS 105-286 and GS 105-287. Therefore the value at January 1 is what the 2018 levy will be based upon (tax rate determined by July 1).

PLEASE TAKE THIS INFORMATION INTO CONSIDERATION AND/OR CONTACT YOUR CPA IF YOU WANT TO PREPAY 2018 TAXES.

Since the assessments are as of January 1 and the tax rate is as of July 1, property taxes for your parcel may increase or decrease from the current levy.