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Maximizing Deductions Through Prepayment of Real Property Taxes Before Potential Tax Law Changes

Currently, individual taxpayers who itemize their deductions can deduct real property taxes paid that year. Under both the House and Senate tax reform bills, the property tax deduction would be capped at $10,000. If that cap is retained in the version that is signed into law, taxpayers may wish to consider prepaying a portion of their 2018 real property tax before the end of 2017 in order to maximize the amount that is deductible.

Prepayment of 2018 taxes is available in a number of key Illinois counties. In Cook County, the maximum amount that can be prepaid is 55% of the tax bills received in 2017. In the other counties listed below, taxpayers may be able to prepay an amount equal to their entire 2017 tax bills (but bear in mind that the current legislation would allow a deduction for up to $10,000 in property tax paid in 2018).

Please note, there is no assurance that the real property tax deduction will be limited, so prepayment may be unnecessary. Also, if you are subject to the Alternative Minimum Tax for 2017, there may be no benefit from prepaying your tax. You should consult with your income tax preparer to determine if prepayment of real estate tax will be beneficial given your individual circumstances.

 

County

Procedure

Cook County

There is an email link provided through the Treasurer’s website that sends you to a request form to request through their email system. 
https://www.cookcountytreasurer.com/prepayment.aspx

The request should include the mailing address of the property and PIN.

DuPage County

Prepayment program requires sign-up through their online system at: 
https://www.dupageco.org/Treasurer/31003/

  • Once signed up, payments can be made in the following manner: 
    Check payments may be mailed to: 
    DuPage County Treasurer’s Office 
    421 N County Farm Rd 
    Wheaton, IL 60187
  • Cash, check, credit card and debit card payments may be made in person at the DuPage County Treasurer’s Office.
  • Online payments may be made through your bank’s online bill payment program.

Kane County

Property Tax can be prepaid through December 29th. In order to do so you need to:

  • Fill out and sign Prepayment Application and returned it to Kane County Treasurer’s office with your check by December 29th, 2017. 
  • This amount cannot exceed the prior year total tax amount for this parcel rounded down to the nearest $100.

Lake County

Prepayments are accepted December 1 – December 29; postmark is not accepted.

  • Make checks payable to the Lake County Treasurer. 
  • Note PIN on check.
  • Indicate Prepayment on your check.

Mail checks to: 
Lake County Treasurer 
18 N County St 
Room 102 
Waukegan, IL 60085

McHenry County

Advance Tax is available through December. In order to participate in advance tax you need to:

  • Fill out and sign The Advance Tax Agreement and return it to the McHenry Treasurer’s office with your check by December 29th, 2017.
  • Pay any outstanding balance by the first installment due date.
  • The PIN of all the parcels being paid appear on the form, or a copy of the tax bill must accompany the payment

Will County

Prepayments of both the first and second installments can be made and the payment amount should be based off of what was paid for the 2016 taxes. Any overpayment can be applied to the next year’s taxes or refunded back.

  • Make checks payable to the Will County Treasurer.
  • Note PIN on check.
  • Indicate Prepayment on your check as well as send a written statement that a prepayment is being made for the property
  • There is a $2 processing fee charged
© 2020 Neal, Gerber & Eisenberg LLP.

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About this Author

Scott J. Bakal, attorney, neal gerber law firm, Partner
Partner

Scott J. Bakal, co-chair of Neal Gerber Eisenberg's Taxation practice group, specializes in finding tax-sensitive solutions to complex financial situations, business transactions, and estate planning matters. Scott works primarily with entrepreneurial companies and high net worth individuals. Scott frequently represents commodities and securities traders, family offices, owners of business jets and companies and executives in employment...

312- 269-8022
Eric Mann, estate planning, attorney, Neal Gerber law firm
Partner

Eric N. Mann counsels families, business owners, executives and individuals on all aspects of sophisticated estate planning.

In addition, Eric advises his clients regarding the legal implications of major life events, such as premarital planning, moving to a new jurisdiction, appointing short-term guardians for vacationing parents and designating agents for health care decisions. Eric prides himself in developing flexible, practicable solutions that maximize his clients’ objectives.

He also authored Section 11-18(a-5) of the Illinois Probate Act of 1975 (755 ILCS 5/11-18(a-5), which expanded the authority of a guardian to make certain gifts and to establish estate planning documents for disabled adult persons. In addition, the section directs the guardian to investigate and pursue a ward’s eligibility for governmental benefits.

312-269-8404