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Old 10-13-2017, 01:38 PM
 
395 posts, read 250,756 times
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Quote:
Originally Posted by yellowsnow View Post
Would love to be wrong and see him do something positive for the average people.
Looks like your wrong.
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Old 10-13-2017, 04:31 PM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
Reputation: 14942
Today's discussion is to preserve the deduction for state & local (property) taxes for the middle class. Democratic Rep. Thomas Souzzi, D-NY who represents part of Long Island, NY, came out to say that in his high cost of living district, you're still middle-class up to $400,000 per year in income. So, he's OK with phasing out a deduction for State & Local taxes above $400K, but wants to preserve the deduction for those below $400K.

Of course, the situation is highly fluid.
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Old 10-13-2017, 04:32 PM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
Reputation: 14942
Quote:
Originally Posted by soclose View Post
Looks like your wrong.
Looks like you're misusing the word "your."
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Old 10-14-2017, 12:57 AM
 
395 posts, read 250,756 times
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Quote:
Originally Posted by SportyandMisty View Post
Looks like you're misusing the word "your."
All Liberals are wrong. How bout dat?
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Old 10-14-2017, 12:39 PM
 
9,957 posts, read 8,450,177 times
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I grew up in what is now his district. This is a jurisdiction with some of the highest income and property taxes in the country. If the dedution for state and local taxes goes away, these people are going to get absolutely crushed. I think you'd see a HUGE tax revolt in NYS if it actually happened.

Quote:
Originally Posted by SportyandMisty View Post
Today's discussion is to preserve the deduction for state & local (property) taxes for the middle class. Democratic Rep. Thomas Souzzi, D-NY who represents part of Long Island, NY, came out to say that in his high cost of living district, you're still middle-class up to $400,000 per year in income. So, he's OK with phasing out a deduction for State & Local taxes above $400K, but wants to preserve the deduction for those below $400K.

Of course, the situation is highly fluid.
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Old 10-14-2017, 12:47 PM
 
Location: la la land
27,202 posts, read 11,367,475 times
Reputation: 19285
Quote:
Originally Posted by BBMW View Post
Trump and the congressional Republicans are looking to rewrite the tax code. One of the ideas their pushing is to increase the standard deduction and eliminate the itemized deduction for state and local taxes. Neither NV nor LV has any form of income tax, so there's no negative here for Vegas residents. There would be a huge downside for CA residents, and a huge incentive to move to NV.

Could this portend a HUGE real estate boom in LV, as Cali residents immigrate to NV en mass?
Not really because under current tax code, if you are in a state without income tax you can deduct sales tax so people in NV would lose that tax break under this tax plan.

California income tax isn't very high for the middle class. For a family of four earning 70k, California income tax is around $2900, hardly enough to make someone move to Nevada unless that's something they want to do for other reasons.

For a family of four living in zipcode 89509 the sales tax deduction in lieu of income tax deduction would be $1010, and that's without adding on tax for large purchases like cars, boats or home renovations. So you would be talking about people moving to LV by the thousands to save what amounts to less than $2000.

https://turbotax.intuit.com/tax-tool.../INF14394.html

Last edited by 2sleepy; 10-14-2017 at 12:55 PM..
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Old 10-15-2017, 01:11 PM
 
9,957 posts, read 8,450,177 times
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I wonder how many people in NV even know about that, let alone use it? How may people track their sales tax payments? How often does it get to the point where it makes sense to itemize because of it? Likely if the standard deduction is increased, that would more than compensate for the loss of the sales tax deduction, and, again, low tax NV would come out ahead.

Quote:
Originally Posted by 2sleepy View Post
Not really because under current tax code, if you are in a state without income tax you can deduct sales tax so people in NV would lose that tax break under this tax plan.

California income tax isn't very high for the middle class. For a family of four earning 70k, California income tax is around $2900, hardly enough to make someone move to Nevada unless that's something they want to do for other reasons.

For a family of four living in zipcode 89509 the sales tax deduction in lieu of income tax deduction would be $1010, and that's without adding on tax for large purchases like cars, boats or home renovations. So you would be talking about people moving to LV by the thousands to save what amounts to less than $2000.

https://turbotax.intuit.com/tax-tool.../INF14394.html
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Old 10-15-2017, 01:17 PM
 
Location: la la land
27,202 posts, read 11,367,475 times
Reputation: 19285
Quote:
Originally Posted by BBMW View Post
I wonder how many people in NV even know about that, let alone use it? How may people track their sales tax payments? How often does it get to the point where it makes sense to itemize because of it? Likely if the standard deduction is increased, that would more than compensate for the loss of the sales tax deduction, and, again, low tax NV would come out ahead.
You don't have to track your sales tax payments, IRS has a calculator based on your income, you can claim a higher amount but in that case you would need to save receipts. When we lived in Nevada we took the deduction based on our salary but added to it the sales tax we spent on some expensive remodeling projects. I think anyone who itemizes is aware of it, it's built into Turbo Tax and other tax programs and tax preparation services know about it.

https://www.irs.gov/credits-deductio...ion-calculator

And the proposed tax plan, as it stands will mean that we won't be able to itemize and filing with the standard deduction will cost us between $1,000 and $2,000.
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Old 10-15-2017, 01:21 PM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
Reputation: 14942
Quote:
Originally Posted by BBMW View Post
I grew up in what is now his district. This is a jurisdiction with some of the highest income and property taxes in the country. If the dedution for state and local taxes goes away, these people are going to get absolutely crushed. I think you'd see a HUGE tax revolt in NYS if it actually happened.
I suspect Republicans in Congress are mostly concerned with how many seats Republicans would lose to Democrats in New York if the state income and property tax deduction goes away.

My personal guess is all of them.

Last edited by SportyandMisty; 10-15-2017 at 01:32 PM..
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Old 10-15-2017, 01:29 PM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
Reputation: 14942
Quote:
Originally Posted by BBMW View Post
I wonder how many people in NV even know about that, let alone use it? How may people track their sales tax payments? How often does it get to the point where it makes sense to itemize because of it? Likely if the standard deduction is increased, that would more than compensate for the loss of the sales tax deduction, and, again, low tax NV would come out ahead.
We are aware of it (Mrs.SportyandMisty is a tax attorney.) We carefully tracked all sales tax paid. It was not useful to us because federal deductions are phased out at high income levels.

Higher Income Taxpayers Hit with Exemption & Itemized Deductions Phase-out | Ara Haddadian, CPA
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