 okay prepayment of next year's property taxes now here's a net the same kind of issue comes up here we're gonna say when do you get the deduction for property taxes well the same as most other taxes for or most other deductions for federal individual income tax purposes on a cashed basis when you pay it and then you're going to come up with a bunch of bright ideas and say well look i made more income this year that i'm going to make next year because of the progressive tax system i'm going to be in higher tax brackets so i would like to take more deductions this year than next year why don't i play with the cutoffs and i'll prepay some of my stuff like taxes i'll try to pay it in advance getting the deduction this year and then not next year which will be beneficial because i'm in higher tax brackets this year or something now the iris is going to not want to do that of course they're going to try to limit the the the manipulation of the tax code which again if you look at like corporations they have to use an accrual basis typically because the cash basis would allow them too much flexibility for that type of manipulation which distorts the actual financial statements for individual income taxes we can't audit everybody that closely to make sure they're using an accrual basis and it's too complex for most individuals to kind of have to do an accrual basis the cash basis is already hard enough so you stick to the cash basis but then people are going to try to get creative and do some accrual cutoff things and then the iris is going to have to try to make rules to stop that from happening right which one of those would be these prepayment ideas so only taxes paid in 2023 and assessed prior to 2024 can be deducted for 2023 state or local law determines whether and when a property tax is assessed which is generally when the taxpayer becomes liable for the property tax imposed line number six other taxes enter only one total on line six but list the types and amounts of tax included so we have the other taxes so these would be obviously they don't have their own line item so you would think they would be less common items we could put the one line here and then include the detail of them on another schedule right so include on this line income taxes you paid to a foreign country and generation uh skipping tax that's the GST imposed on certain income distributions now again if you have foreign taxes and you're dealing with people that are paying foreign taxes you're probably dealing with more complex returns that's going to be a question from a taxpayer perspective a taxpayer perspective do i want to be taking on clients that have issues that are outside of my state even because i'm probably going to specialize in the state that we are in if they have other states or they have tax implications in multiple states that could add a level of complexity which you might say i'm not just going to take those on or maybe i will and then foreign if people have foreign taxes that they owe and so on and dual citizenship and basically are foreign income and that kind of thing whole another world that can really expand the complexity of the tax return the question from a tax preparer standpoint being do i want to take those clients on do i want to specialize in those areas maybe that's where i want to you know really create value possibly and then we've got this generation skipping uh tax what what is that well note that we have the estate tax or the federal government usually taxes people on an income situation meaning we tax people when they earn the money we don't tax their balance sheet because we already taxed it when they earned the money so that's the idea but when someone dies they wanted to tax the balance sheet they want to compile all the all the stuff that they have and tax the wealth that that they have at that point in time that's called an estate tax or a death tax right so so what are people going to do if that happens well if you're going to tax me when i die i'm going to try to give away all my money before i die on my deathbed right but if you so then the government's going to say well i don't like that because now that this that rich person i was i was all waiting on my fingers were like mr burns is going excellent ready to take the guy's money when he dies because he's on his deathbed but then he gave all his money to his children right before he died and so and so we can't have that so then so then you could see that they're going to say well you can't do that you can't give all your money away on the death bed decide a thing so so how are you going to limit that well then you have to put in a a gift a limitation on the gifts that you can give right so you and that's going to lead into all kinds of of estate planning kind of issues in terms how can someone pass money from one generation to another without being hit with the state tax with the with the estate tax or death tax and then income tax situations and that's when you're saying well if i can't give it to my to my son or daughter maybe i can give it to their grandchild and have a generation skipping kind of situation and so on and so forth so that gets into a state planning which again is usually there for higher income individuals because those would be the ones that would typically be subject to this kind of a state or death tax although i wouldn't be surprised the way things are going because we're the money's you know the federal government spending too much money they're gonna like anything else they might start applying it lower down lower down the ladder at some point when they when they hit the wall in terms of spending but that's so that's usually planning for large for higher income individuals so you would be dealing with that kind of thing typically if you have higher income individuals and you're doing things like a state planning or more complex tax planning situations usually all right tip you may want to take a credit for the foreign tax instead of a deduction so if you have foreign taxes then the question is again how are you going to be dealing with that because if you have taxes related to a a foreign country they're going to have their own tax system so the question is who's going to get the income the foreign country the tax income the united states or the other country we don't want a situation where you're double dipping because that would be bad for the taxpayer of course but in order to work that out we would need some kind of tax treaty between in essence the two countries so you have to see how how that works and then and then basically what's the best way to record that on the return is it like a deduction that you record on it or is there a credit so again that would be more of a specialized area for people that have like income for example in multiple countries that could be subject to multiple taxes from those countries so you may want to take a credit for the foreign tax instead of a deduction see the instructions for schedule three form 1040 line 1 for details don't include taxes you pay to a U.S. territory in this line instead include U.S. territory taxes on the appropriate state and local tax line don't include federal estate tax on income in respect of a decedent on this line instead include it on line 16