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Sorry it's hard to read. TAbles dont translate well. Left is 2018 and right is 2017. Your standard deduction will double. So unless you have over $24k in deductions, you won't even itemize anyway.
I lost the personal exemption and my deductions will go down because of the salt limitations yet I will still itemize so I haven’t put it to paper but I think I will pay a little more
I lost the personal exemption and my deductions will go down because of the salt limitations yet I will still itemize so I haven’t put it to paper but I think I will pay a little more
Well, if you haven't put it to paper, why do you think you will pay more? Have you even looked at the tax rates?
We are getting close to the 10k mark in Property Tax alone, does this mean I am close to my limit for other taxable deductions ?
The allowable deduction for SALT has a max of $10K. There are still other allowable deductions. Charitable contributions are allowed up to 50% of your income (some limited to 30%). Medical deductions are allowed (for amounts that exceed 7.5% of your income. There are more. The standard deduction (married) was raised to $24K, so would need $14K+ of other deductions to exceed the standard.
(Unless you are a high earner, which based on you being close to $10k in property taxes, I am guessing you are not).
Depending on what you consider "High", how does Property Tax relate to a persons income ?. Not looking to bash, just wondering ?. Thank you all for your input.
Property tax limits are chickenfeed compared to the SALT tax change.
They're not separate. It includes income taxes, sales taxes, real estate taxes, and property taxes. Those are the line items under the State and Local Taxes section of schedule A that are subject to a cap of $10,000.
Depending on what you consider "High", how does Property Tax relate to a persons income ?. Not looking to bash, just wondering ?. Thank you all for your input.
It probably has less impact on high income since they're involved in more business and investment activities. You can write off the real estate tax under Schedule A, Schedule C, or Schedule E depending on why you hold the property. Schedules C and E don't have the deduction limit.
Well, if you haven't put it to paper, why do you think you will pay more? Have you even looked at the tax rates?
I just did the math and I will pay slightly more under the new plan because of the two items I mentioned, losing the personal exemption and SALT lowering my deductions
It probably has less impact on high income since they're involved in more business and investment activities. You can write off the real estate tax under Schedule A, Schedule C, or Schedule E depending on why you hold the property. Schedules C and E don't have the deduction limit.
That's not what the Tax Policy Center concluded
High-Income Households Would Benefit Most From Repeal of the SALT Deduction Cap
It probably has less impact on high income since they're involved in more business and investment activities. You can write off the real estate tax under Schedule A, Schedule C, or Schedule E depending on why you hold the property. Schedules C and E don't have the deduction limit.
Depending on what you consider "High", how does Property Tax relate to a persons income ?. Not looking to bash, just wondering ?. Thank you all for your input.
Usually people who make a lot of $$ are in homes with higher property taxes.
I just did the math and I will pay slightly more under the new plan because of the two items I mentioned, losing the personal exemption and SALT lowering my deductions
Well, I don't mean to doubt your intelligence, but do you understand how marginal tax brackets work? ALL of the brackets are lower and you don't pay the rate that your highest dollar of income is on ALL of the $$. You know that, right?
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