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Every news source I've consulted from the New York Times to the Washington Post to Fortune magazine to Bloomberg News to CNNMoney, says the $10,000 deduction applies to state and local taxes, and to the property deduction. And that the changes take effect with 2018 taxes.
i think you are correct and it has been extended to state and local taxes too .
Here's an excellent guide for year-end tax issues, since we're on that subject (it might be behind a paywall, but I think it can be read in its enrirety on mobile--that's where I read it without signing in): https://www.wsj.com/articles/cut-you...n-1-1513726078
if you think you will owe ny state / nyc taxes when you do your taxes you may want to send in an estimated payment now .
if you itemize you will not be able to deduct the state and local taxes if you mail the check with your taxes next year . you may be better off sending in estimated and getting the deduction now .
Thanks for bringing this subject up mathjak. Thread took a weird turn somewhere but because of your post I called my accountant who was totally unaware of my situation re unreported extraordinary income this year.
He totally agreed with your analysis and after our conversation he did some calculations and quickly emailed me vouchers to pay estimated taxes for this year. I had to shell out $25,000 to the US and $12,000 to NY State and NYC !!!
Now I will be able to deduct the full NY State and City amount this year in addition to the other NYC and State taxes already withheld from my paychecks and the apartment maintenance property tax and mortgage interest, etc. If I had let it all go until April it would have been perfectly legal but I would have been way over the amount that will be allowed next year and would have lost the deductibility of that amount forever. I might also have had penalties for not filing or paying estimated taxes .
Thanks for bringing this subject up mathjak. Thread took a weird turn somewhere but because of your post I called my accountant who was totally unaware of my situation re unreported extraordinary income this year.
He totally agreed with your analysis and after our conversation he did some calculations and quickly emailed me vouchers to pay estimated taxes for this year. I had to shell out $25,000 to the US and $12,000 to NY State and NYC !!!
Now I will be able to deduct the full NY State and City amount this year in addition to the other NYC and State taxes already withheld from my paychecks and the apartment maintenance property tax and mortgage interest, etc. If I had let it all go until April it would have been perfectly legal but I would have been way over the amount that will be allowed next year and would have lost the deductibility of that amount forever. I might also have had penalties for not filing or paying estimated taxes .
Thanks
my pleasure .
while some here complain about things not applying to many readers , they lose sight of the fact they do apply to some .
if it is something someone has no interest in -don't read it . but silly comments like how many does this apply to are nonsense just for your reason .
Quite an important benefit that "cool nabe" dwellers typically eschew in this city. I've been building equity since my 20's while most NYC's dwellers my age are still figuring out which neighborhood to rent in so they can be "cool". Fine by me! lol
of course the flip side is i have been building wealth all these years by renting and taking part in far better investments with the dough not sitting tied up in a house as equity. that difference can buy multiple houses today .
so it isn't whether you buy or rent but what you do to build wealth if you rent .
renters are a more varied group ranging from the very poor to the very wealthy so many will never build wealth nor have a choice as to whether to own or invest elsewhere . they will just be poor renters forever .
Hopefully others who live in rent stabilized apartments like yourself have done the same. But its all relative anyway.
My mortgage is a few hundred less than $2000 a month, which give or take is the comparable rent for my place (probably more like $2100-2200). I've had plenty of left over cash for investments over the years.
You know that the typical NYC dweller isn't maximizing their disposable income into investments though. They are spending whatever is left over after paying their exorbitant rent which is wasted money itself.
rent stabilized has nothing to do with it . half of all rentals in nyc and the boroughs are stabilized but most are at market or very very close . in fact our building is likely above what 80% of tenants pay for market rents .
early on i made sure i always had money to invest by working side gigs , it never came from saving on rent , rents were always to close to market to really influence much .. once i developed a base i was able to cut back .
you will tend to find those who are way below market usually tend to have incomes to match so it ends up being a wash for them . those with the money tended to want to own . i can't imagine living in some dingy rent controlled apartment if i had the dough to buy a nice place even if i was paying a small rent . most of those who have rent controlled apartments are old and have been there forever . .
rent stabilized is different and rents are all over the map , but any building i would want to live in is pretty much near or at market .
our building where we live is at market . bay terrace attracts a more affluent renter . they rent a short time and buy . so the turn over and constant capital improvements have us all up near market with newbees at market .
but the building gets 200 a month for a parking spot so anything under you may be is made up by the parking situation .
usually the older tenants have the spots so if they were below and they have 2 cars that adds 400 a month to the rent .
like you said , it is a personal thing . you will always have those that find a way and those that will just find an excuse in all walks of life .
there is always a way to do something . most don't have the motivation and drive to make things happen .they just float to wherever life lands them . usually from one low paying job or dead end job to another .
Last edited by mathjak107; 12-21-2017 at 09:37 AM..
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