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In the end $5K more in taxes isn't going to hurt me. The shocking part is that even though I'm paying $5K more, the tax law is making the deficit worse...which as a tax-paying countryman is quite maddening. My other issue is how fast this change occurred. I would have preferred a "tax law lite" version that would have gradually changed to their targets over 5 years. Perhaps then they would have realized how horrible this was going to be. You know it's like wading to a swimming pool from the shallow end instead of diving into the deep end.
In the end $5K more in taxes isn't going to hurt me. The shocking part is that even though I'm paying $5K more, the tax law is making the deficit worse...which as a tax-paying countryman is quite maddening. My other issue is how fast this change occurred. I would have preferred a "tax law lite" version that would have gradually changed to their targets over 5 years. Perhaps then they would have realized how horrible this was going to be and made adjustments. You know it's like wading to a swimming pool from the shallow end instead of diving into the deep end.
2018 Tax Rates – Standard Deduction $24,000 2017 Tax Rates – Standard Deduction $12,700
10% 0 to $19,050 10% 0 to $18,650
12% $19,050 to $77,400 15% $18,650 to $75,900
22% $77,400 to $165,000 25% $75,900 to $153,100
24% $165,000 to $315,000 28% $153,100 to $233,350
32% $315,000 to $400,000 33% $233,350 to $416,700
35% $400,000 to $600,000 35% $416,700 to $470,700
37% Over $600,000 39.60% Over $470,700
Only really large mortgages - interest rates have been so low that a lot of people have been taking the standard deduction for years now. In fact, I only know two couples who still itemize (or at least did as of last year), they have $500k mortgages....
In addition to prop tax (esp in high prop tax states) and other itemized deductions plus personal exemptions, it could easily exceed the standard deduction, esp. in the early years of a mortgage. Not a large mortgage, but part of the package of deductions.
2018 Tax Rates – Standard Deduction $24,000 2017 Tax Rates – Standard Deduction $12,700
10% 0 to $19,050 10% 0 to $18,650
12% $19,050 to $77,400 15% $18,650 to $75,900
22% $77,400 to $165,000 25% $75,900 to $153,100
24% $165,000 to $315,000 28% $153,100 to $233,350
32% $315,000 to $400,000 33% $233,350 to $416,700
35% $400,000 to $600,000 35% $416,700 to $470,700
37% Over $600,000 39.60% Over $470,700
Oh I see what you're saying. The answer is not it did not help me, though it might have helped others. As I said before I have a little over $20K that I cannot deduct since the new tax law and the end result makes itemizing pretty much on par with taking the standard deduction. I owe $5K more to the federal government compared to last year and paying property taxes and mortgage interest makes less cents...and less sense because they are not deductible for me any longer.
I wonder if this will affect the real estate market. I imagine landlords will pass on this added cost (less deductibility) to their tenants while at the homebuyers will be seeking lower purchase prices as net homeownership costs have risen for folks earning more than $70K in states with relatively high income taxes. Perhaps those two circumstances will cancel each other out.
Oh I see what you're saying. The answer is not it did not help me, though it might have helped others. As I said before I have a little over $20K that I cannot deduct since the new tax law and the end result makes itemizing pretty much on par with taking the standard deduction. I owe $5K more to the federal government compared to last year and paying property taxes and mortgage interest makes less cents...and less sense because they are not deductible for me any longer.
I wonder if this will affect the real estate market. I imagine landlords will pass on this added cost (less deductibility) to their tenants while at the homebuyers will be seeking lower purchase prices as net homeownership costs have risen for folks earning more than $70K in states with relatively high income taxes. Perhaps those two circumstances will cancel each other out.
It lowered the taxes for 90% of Americans...if you are paying more, you were getting too many deductions under the old tax law. I would expect it to affect house prices.
This tax law was structured to only negatively impact people in Democrat states like NY, NJ, Cali, Conn, Illinois, Mass...so no states that voted for Trump were negatively impacted...by design.
Sure, but WA hasn't voted GOP for President since something like 1984, and of course that was the former Governor of CA. WA has no income tax. OR hasn't voted GOP for President since 1984 either. OR has no sales tax.
There are people on this forum filing in TX who were complaining about the new SALT cap.
Arguably it impacted states that have abnormally high tax rates regardless of political affiliation.
Oh I see what you're saying. The answer is not it did not help me, though it might have helped others. As I said before I have a little over $20K that I cannot deduct since the new tax law and the end result makes itemizing pretty much on par with taking the standard deduction. I owe $5K more to the federal government compared to last year and paying property taxes and mortgage interest makes less cents...and less sense because they are not deductible for me any longer.
I wonder if this will affect the real estate market. I imagine landlords will pass on this added cost (less deductibility) to their tenants while at the homebuyers will be seeking lower purchase prices as net homeownership costs have risen for folks earning more than $70K in states with relatively high income taxes. Perhaps those two circumstances will cancel each other out.
I can assure you that it already is, at least it is here in Illinois.
It lowered the taxes for 90% of Americans...if you are paying more, you were getting too many deductions under the old tax law. I would expect it to affect house prices.
This tax law was structured to only negatively impact people in Democrat states like NY, NJ, Cali, Conn, Illinois, Mass...so no states that voted for Trump were negatively impacted...by design.
I don't necessarily agree it was designed to screw blue states. I think it was just to put an end to giving the states who have high taxes an advantage over states that have lower taxes.
I don't necessarily agree it was designed to screw blue states. I think it was just to put an end to giving the states who have high taxes an advantage over states that have lower taxes.
You're right but I can say for sure that they also made sure they didn't hurt many in the states that voted for trump.
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