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Is your home your only asset? How much did your 401(k) increase since the election?
Primary residence's are nothing but a money pit.
Do you really think a $1m home is going to drop in price $100k because a reduction of $3-5k/year in a tax bill? There will be buyers that come into that market that aren't effected by SALT deductions. My wife an I earn a sold income but, don't have deductions more than $24k with the new standard deduction. We will also pick up a $2k child tax credit that was previously $1k, that a credit not deduction. We will be looking for a new 1 family home with taxes in excess of $15k. There will be buyers that stabilize the market.
Nobody's 401K did anything, until the assets within it are sold. Interim price fluctuations ARE NOT GAINS. That is Finance 101.
You didn't mention that you'd be losing all your personal exemptions. So if you have 1 kid, wouldn't that be $12,150? If someone had 4 kids, wouldn't that be the loss of a $24,300 deduction?
What good is the increase in the standard deduction for a family of 5 with the corresponding elimination of personal exemptions?
Stop arguing about this, it's basic math. When the federal government makes it less advantageous to own a home, it reduces demand for homes. Less demand equals lower prices.
So they are literally mauling the NJ homeowner with higher taxes and destruction of equity.
And that's before the punishment to be exacted by the new liberal "sanctuary state" governor y'all just put in. No, I don't feel sorry for the people of this state. They are absolute masochists and they appear to be getting, through acquiescence, exactly what they want, and thus deserve.
By the way, one result of last night's negotiations seems to be that the Senate Bill now restores the $10,000 deductibility provision of mortgage interest. The House already had this in place. So at least it appears that the conference committee probably won't be screwing around with that.
Nobody's 401K did anything, until the assets within it are sold. Interim price fluctuations ARE NOT GAINS. That is Finance 101.
You didn't mention that you'd be losing all your personal exemptions. So if you have 1 kid, wouldn't that be $12,150? If someone had 4 kids, wouldn't that be the loss of a $24,300 deduction?
What good is the increase in the standard deduction for a family of 5 with the corresponding elimination of personal exemptions?
Stop arguing about this, it's basic math. When the federal government makes it less advantageous to own a home, it reduces demand for homes. Less demand equals lower prices.
So they are literally mauling the NJ homeowner with higher taxes and destruction of equity.
And that's before the punishment to be exacted by the new liberal "sanctuary state" governor y'all just put in. No, I don't feel sorry for the people of this state. They are absolute masochists and they appear to be getting, through acquiescence, exactly what they want, and thus deserve.
With that logic, if your home decreases by 10% and it's not realized how are you effected? Lower prices will bring in more buyers. You want to argue that you'll have less HELOC borrowing power? OK - I can argue that many 401(k), now can borrow up to $50k because of appreciated values to go into real estate towards their home purchase.
Stop with the scare tactics Mr. Real Estate Agent.
By the way, one result of last night's negotiations seems to be that the Senate Bill now restores the $10,000 deductibility provision of mortgage interest. The House already had this in place. So at least it appears that the conference committee probably won't be screwing around with that.
$10,000 deductibility doesn't help if personal exemptions and SALT are removed. I don't see how NJ "middle class" families will be able to hit the 24K standard deduction hurdle, so the $10K deductibility is not going to be able to be used by such families.
Standard deduction is doubling for married couples
Child tax credit is doubling to $2k
Tax brackets are being reduced to 3-4, we will all likely pay less
Corporate tax rate being slashed to 20% + deregulation that is occurring will push GDP up to 3-4% which will push job creations throughout the country. We are already seeing this in middle America. More jobs = more tax dollars over time. Our economy was not doing well from 2013-2016, we were potentially close to a recession and Trump came in and threw gasoline on the American economy.
The ridiculous hate on this bill is just the anti-Trump crowd not wanting to see him succeed.
We're losing the personal exemption and the standard deduction isn't indexed to inflation. Every calculation I've done on this tax plan says I'm paying more. Good chance my neighbors are all paying more. To answer what you said previously, I sure as hell factored the tax code into the affordability of my house - why wouldn't you? Willingness to spend on housing will decline and it leaves the current owners holding that bag.
Also we were not close to a recession from 2013-2016 - GDP growth was 3.3%, 4.4%, 4.0%, and 2.8%.
We're losing the personal exemption and the standard deduction isn't indexed to inflation. Every calculation I've done on this tax plan says I'm paying more. Good chance my neighbors are all paying more. To answer what you said previously, I sure as hell factored the tax code into the affordability of my house - why wouldn't you? Willingness to spend on housing will decline and it leaves the current owners holding that bag.
Also we were not close to a recession from 2013-2016 - GDP growth was 3.3%, 4.4%, 4.0%, and 2.8%.
GDP did not break 3.0% under OBAMA. Where are you getting those numbers? 4.4%???? Never
Standard deduction is doubling for married couples
Child tax credit is doubling to $2k
Tax brackets are being reduced to 3-4, we will all likely pay less
Corporate tax rate being slashed to 20% + deregulation that is occurring will push GDP up to 3-4% which will push job creations throughout the country. We are already seeing this in middle America. More jobs = more tax dollars over time. Our economy was not doing well from 2013-2016, we were potentially close to a recession and Trump came in and threw gasoline on the American economy.
The ridiculous hate on this bill is just the anti-Trump crowd not wanting to see him succeed.
I want him to succeed, what are you kidding me?? unfortunately we are all on this sinking ship together. I wanted Obama to succeed also.
First, I don't have kids. so no help for me there.
The doubling of the standard deduction for most NJerysians will come out as a wash after losing the SALT deduction and the property tax reduction. most folks pay a lot more than 10K in property taxes and again I'm a senior so not being able to deduct medical expenses will hurt. just had my knee replaced last December and even with great health insurance the oop was alot.
So untrue about the recession. a recession is a decline in the GDP
2016 the GDP grew by 3.1%
2015 the GDP grew by 3.1%
2014 the GDP grew by more than 4%
So I don't know how you figure the economy was not doing well?? really don't. Now I'm not going to get into Obama vs Trump because you can't compare the two simply because Trump inherited a healthy economy, Mr Obama did not. so you can't compare and secondly, job growth has been pretty routine and wages are still flat but that's another issue.
This is a bill that almost every expert (economic not political) has said will benefit the top 10% most. Unfortunately I am not one of them and plugging in my taxes from last year, I will definitely be paying more
lol once again the great thing about not having cable, it frees up a lot of time for me to play with turbo tax.
With that logic, if your home decreases by 10% and it's not realized how are you effected? Lower prices will bring in more buyers. You want to argue that you'll have less HELOC borrowing power? OK - I can argue that many 401(k), now can borrow up to $50k because of appreciated values to go into real estate towards their home purchase.
Stop with the scare tactics Mr. Real Estate Agent.
You didn't address the LOSS OF PERSONAL EXEMPTIONS. You neglected its inclusion, on purpose, in your earlier posts. And you didn't address it now.
And: I am "effected", that is to say, "affected", in counseling and helping home sellers who will be REALIZING THE EFFECTS OF THIS RAPE in the Spring market when they sell under the revised rules.
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