MINNEAPOLIS - It is a one-time loophole that expires in days, and so far in Hennepin County, more than 5,000 people have pre-paid their 2018 property taxes in order to save money now before the new tax bill goes in effect.
"I've never seen anything like this before," said Michael Condon, a CPA with Thoresen, Diaby, Helle, Condon & Dodge.
Condon has spent the last week guiding his clients on whether they'd save money by pre-paying.
"There are a lot of factors that go into it," he said.
So we asked him to run us through a few examples.
First, a single person making $50,000 with a property tax bill of $2,000.
"They will very likely benefit by paying their taxes early," Condon said.
The reason? Condon says that taxpayer will very likely be better off next year taking the higher standard deduction instead of continuing to itemize.
And he says if they pay early, they'll likely save about $450.
Next, a married couple filing jointly making $120,000 with a property tax bill of $4,000.
Condon says they too should pay early, if they can.
"Then they're going to save roughly $1,200 by paying their taxes early," Condon said.
The reason, Condon says, the couple in that example will next year likely either be better off taking the standard deduction as well, or could be affected by the new $10,000 cap on local tax deductions.
Condon's third example covers a wide range -- anyone who falls under the "Alternative Minimum Tax," which Condon says mostly includes people making between $175,000 and $700,000. He advises them not to pay early, because property tax is not deductible under the Alternative Minimum Tax, so there's no benefit.
Of course, there's also no benefit to paying early for those who already take the standard deduction instead of itemizing.
To prepay your property taxes in Hennepin County, follow this link.