It's property tax time in Texas, with most folks receiving their tax bills in the past week or so. We often get questions about when to pay property taxes, which are not due until 2025, but can be paid before the end of this year if desired. This year, people may want to delay making their tax payments, both for property taxes and state income taxes (if they apply) until 2025. Although, if you itemize your deductions, you will want to make sure that you pay or have paid the $10,000 limit for 2024. (If you're in Texas, you can prepay $10,000 and pay the remainder in 2025.)
The reason to delay is that there is a move afoot to increase the SALT (state and local tax) deduction above the current $10,000 maximum. The Trump tax act passed during his first term in office created the current limit, but members of congress from high tax states have been complaining about the limits since the law was passed, as the $10,000 limit is particularly painful for their constituents. There is talk of increasing the maximum or removing the restriction altogether, but at this point it's just talk.
As with anything related to US tax law, there is no certainty that Congress will change the limit for next year, but what have you got to lose? If you are itemizing your deductions and have already met the $10,000 limit for 2024, there's no reason not to defer your tax payments until 2025 and possibly receive a benefit from a change to the limit in 2025.
You may want to discuss this with your tax preparer, but it's worth consideration. You are also welcome to call us at Horizon Wealth Advisors and we'll be happy to talk with you about your particular situation.