AMT released by SALT deduction limited to 10k - how will this affect NJ Real Estate?

[AnesthesiaMD]

Originally Posted by Tubulus

OK...let's say you make 10mm a year and pay 1mm in state and local taxes (just throwing out numbers here). Before the current bill, you are not hit by AMT since you pay most of your tax at the 39.6% rate. However you do deduct your 1mm from your AGI before calculating tax. After this, you deduct (basically) nothing, so this new bill costs you about 390k. This probably reduces your takehome between 5 and 10 percent.

OK. I see what you are saying. Either way, you are paying more than the AMT, but you are still getting a break from the SALT deduction.

Is there no current limit on the SALT deduction?

But hey, if you are paying THAT high of a percentage of your income to the federal government, in my opinion you deserve to keep that deduction.

[Jackal1]

All you rich people who make like 80k plus are going to have to pay now.

[cw30000]

Any tax cut is no tax cut unless they cut spending.

I welcome a simplified tax cut, not this full of exceptions and different rules. It will only get tax even more complicated than it is now

[DefiantNJ]

I think he basic idea is that with capped/limited deductions and increased standard deductions there is less and less incentive to itemize deductions. Which should theoretically simplify the tax filing process for most middle class/upper middle class. This is not a bad idea.


The bad idea is that the rich essentially get a huge tax cut with highest tax bracket applying to an income of 1 million as opposed to 400k or so right now. Plus probably there are a number of tax loopholes that rich can exploit that no one yet understands. In addition to the cancelation of AMT, this tax bill essentially offers a huge windfall to the rich; those earning between 400k to 1 million per family. Republicans are finally paying back to their campaign contributors.