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Well I can tell you as a landlord that I'm not sure what will happen to the property tax deduction and the depreciation we were able to claim on the income properties. We will be talking to the account about it this week.
Since the cap on property taxes is 10k, that just about covers our personal property. That leaves about another 10k that may not be deductible. So yes, I can see how rents will rise.
While it's nice to have an extra couple of grand in your pockets, there is a flip side to that. Some people win, some people lose. When I hear Ryan talking about revisiting entitlements, then yes, I'm concerned. Seniors may pay for the extra money in the working class. I sure hope not.
While I agree that tax cuts are nice, I don't agree with the imbalance of it, and yes, it is crumbs to the middle class compared to what the corporations receive. I do agree that all should get a tax cut, but it could have been divided better.
As our accountant said last year, these tax laws aren't designed for you and me, they're designed to benefit those writing them.
I remember McConnell saying that tax reform must be revenue neutral and not simply deficit neutral. Does the new tax plan meet that agenda? Does that mean that Medicare, medicaid and other entitlements will be cut to pay for the tax plan? Someone has to pay for the increased deficit.
I'm happy for you guys that are excited about the extra money in your paychecks, but remember, all that glitters is not gold.
Your rental property tax is an "expense" on Schedule E (not a "deduction" on Schedule A). So the tax reform doesn't affect your rental property tax "expense".
You need to ask your accountant / tax preparer but I think most landlords will now be able to take ALL their remaining rental property depreciation on their 2018 taxes.
By 2027 the richest 1% of Americans get 80% of the Trump tax cuts. https://www.forbes.com/sites/janetno.../#5c87348b1099
80% of the tax cuts go to the richest 1%, and the remaining 99% of Americans get 20% of the tax cuts.
Why do you want to give wealthy people the whole loaf and then only get a few crumbs for yourself?
I got a $15/mo tax cut and a $25/mo rent hike. Am I keeping more of my money?
WHY was rent raised? Because of the tax cuts?
Didn't you just move in a few months ago? Why don't you have a lease? That would have prevented a raise in rent a few months into your living there. Or is this place like your last one: a flophouse?
It's a game of percentages. Maybe you should have done more in your life to earn a larger paycheck.
I'll remind you again - we come from almost identical backgrounds and ages. The only difference is that you have a college degree (I do not) and you are a man. Which makes my path, on paper, more difficult. Yet I've managed to earn a good income, own a few houses in my day, and can count on much more than a $6 increase in my paycheck. A lot more, in fact, since on top of the tax break, I got a promotion, bonus and pay raise in the last month. In exchange for that promotion, I did have to agree to more responsibility and work. No standing at a checkout counter, handing out receipts for me.
As for your harping on the tax break bringing guaranteed rent increased, I call garbage. Where's your proof, or is it in the same place as your "I could afford a house if it was only tiny enough"? Most folks have leases, and their rent may or may not increase when the lease is up. How much IS that rent increase you're talking about? As much as my property tax went up? I doubt it.
You can become an MLB manager!
FWIW I had huge social/emotional/psychological advantages growing up. I was a neglected kid with no socialization and have been playing catch-up ever since. Ultimately I failed academically because I was too absorbed in tending my butthurt, so all the career options I had desired became unavailable to me.
Personally I'd be better off if there had been no tax change.
So your rent increase was specifically a result of the tax cuts? You know that for a fact? And this is your home rent, not the storage unit that holds your junk rent, right? Did that rent go up too?
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