Oahu homeowners are rushing to take advantage of this popular tax deduction

(Image: Hawaii News Now)
(Image: Hawaii News Now)

HONOLULU (HawaiiNewsNow) - Oahu homeowners flocked to Honolulu Hale on Thursday, hoping to take full advantage of a popular tax deduction before the new Republican tax plan kicks in.

"I'm in line to pay my second installment of my tax bill early, so that I can get a deduction in 2017," said Manoa resident Rick James.

Beginning on Monday, as part of the legislation that overhauled the country's tax code, deductions for real property taxes and state income taxes will be capped at $10,000. Prepaying by Friday will allow people to deduct the full amount.

Former Honolulu Mayor Peter Carlisle figures he can save about a thousand dollars by paying in 2017.

"Normally, this is something you avoid. You put a stamp on an envelope and send it somewhere," said Carlisle. "Under these circumstances, because of the changes in the laws and the rules and the players, it's worth getting here."

The same logic applies to nonprofits, where there will soon be less incentive for residents to make charitable donations next year.

The Kidney Cars Program, for example, has been swamped by last minute donors hoping to take advantage of the favorable deductions the new tax plan kicked in.

"I think this year, it might be more intense because of the new tax laws, and no one quite knows what next year will hold and if it will be deductible or not," said Diana Benningfield, senior director of The Kidney Foundation of Hawaii.

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