DENVER -- The rush is on to pay property taxes before the end of the year and potentially take advantage of a bigger tax deduction.
In Denver on Thursday morning, about a dozen people lined up inside the Treasury Office to find out what their current property taxes are and pay them before Monday.
“I want to pay them early, so I can get that deduction benefit before the end of the year,” Peter Sour said.
Starting in 2018, the new tax law says taxpayers can deduct only $10,000 of state income and property taxes.
That’s a change that could potentially cost wealthier people and those with bigger homes thousands of dollars every year, according to Littleton tax attorney Steven Anderson of Anderson & Jahde.
So people are rushing to pay property taxes now. But Anderson said taxpayers can only take advantage of the deduction if property taxes are already assessed.
“A lot of people are conceptualizing an idea of prepaying 2018 taxes now so that they can take advantage of a larger deduction that they won’t be able to take advantage of next year in 2018,” Anderson said. “ The concept of prepayment is dangerous.”
That’s because the IRS said its' against the rules.
In Denver, the Department of Finance said the property tax assessments are complete. They’re usually mailed in January, but people can call or go to the Treasury Office to get their bill and pay it.
The office is getting so many calls, it’s had to bring in operators from other departments to answer all of them.