Thinking about prepaying some of your 2018 taxes in advance of limitations imposed by the Republican tax plan?
Well, forget about it.
The final version of the tax legislation includes a provision that would disallow a deduction in 2017 for any prepayment of 2018 state and local income taxes (otherwise known as SALT). Forbidding prepayment means taxpayers cannot take advantage of the current tax law, which is more generous.
Currently, taxpayers who itemize can deduct those expenses — which can be burdensome in high-tax states — on their federal tax return. The GOP bill imposes a $10,000 deduction cap on the combined value of SALT and property taxes beginning in tax year 2018.