If I prepay half of my 2008 property taxes in 2007 , can I deduct it on my 2007 tax return?

Question

Any hidden traps?

Answer 1

Yes since you paid half of your taxes.

Answer 2

Sure. The only "trap" will be that next year you'll only have half of the 2008 taxes to deduct. This is a pretty common strategy especially if you are just under the cutoff for itemizing -- stack your deductions by pre-paying as much as you can one year and take the standard deduction the next year.

Answer 3

Yes. The amount paid in 2007 can be deducted in 2007. Many people do this deliberately - pay ahead one year and itemize that year, then just take the standard deduction the next year.