Trump's tax proposals would be unsustainable for many in Westchester - thoughts? (broker, lawyers)

[Westchesterwannabe]

Originally Posted by JaRuss01

What are you guys talking about? Most people with high tax bills are in AMT, with joint income between 200-700k (AMT phase out) ie the Op who pays 35k in property tax, ie most residents in lower Westchester with lofty tax bills, will have huge savings between the elimation of AMT, and a 10k property tax allowance and better tax brackets. Check the tax plan calculator. I bet you save 10-40k a year with the new tax plan...at least until it gets phased out in 5 years and then maybe you’re net neutral.

No offense. But is this board a bunch of stay at homes that have no handle on their income, or their tax bills, and are simply looking for something to complain about? Because if you were the person in the household who had to stroke the government a check for 5-20k year after year for your AMT bill, with zero real estate tax deduction, you would know pretty darn well that the new tax plan would be to your benefit

The AMT hits people because of exemptions, getting rid of the AMT will have no impact once you can no longer take the big SALT exemptions. This leaves us with new rates which are trivial. So those who are currently hit hard with AMT will probably not have much of an impact, those who avoid AMT (below and above the 200k - 700k) will see a big impact. An impact which will likely work it's way into the housing market.


It's not a trivial thing to complain about. This area and the states getting hit hardest by this plan are already paying into the federal coffers much more than is received back. Now, they're asked to pay more, and for what, to fund tax breaks in completely different sections in the tax code. Not fair. If you're a Republican or Trump fan it shouldn't matter you should be outraged.

[allanny13]

Comparing homeowners in Westchester & FFC, does the new plan make buying in FFC more advantageous (ie higher home prices but lower property taxes, the former which is still deductible via mortgage interest with no cap, the later which will be capped at 10k)?

[love_westchester]

FF County has lower property taxes (and higher home prices which you pay up front but hopefully get back when you sell) but given the fiscal issues in the state both income taxes as well as property taxes are probably headed higher.

We are still a few years away from moving to FL. Bracing for the tax plan impact on RE prices in Westchester. Has anyone heard anything anecdotally on what might be starting to happen here?

[entropywins]

Originally Posted by New Yawker

Finally, somebody on this board points out the obvious: for many people, the AMT takes away the value of the deductions you thought you had. This plan would eliminate the AMT together with some of those deductions.

Actually, the Senate Bill does not eliminate the AMT.

And as others have mentioned, this bill is a blatant tax increase targeting upper-middle and "lower-upper" class blue county taxpayers, who already heavily subsidize red states/counties.

https://www.nytimes.com/interactive/...bill-salt.html

[hominamad]

I'm against this plan if it means my taxes are going to go up - because I'm in one of those buckets that is considered "wealthy" in the eyes of the tax code, but in the reality of Westchester, middle or middle-upper class.

But I don't understand why so many democrats are against it. The NYT article is all about how this will mean tax increases for the wealthy. Isn't that what democrats generally want?

Also, if I'm paying AMT currently, it means I wasn't really taking advantage of those deductions anyway. So will this still make my taxes go up? Very confusing!

[love_westchester]

CA seems to be working on a workaround for the SALT deductions. Perhaps NY/NJ/CT can try something similar. It goes like this. Any individual taxpayer can get 100% credit towards a charitable contribution they make to the state. So if you calculate your state income tax and then make a charitable contribution in the same amount you essentially get a federal deduction for that "charitable" contribution. IRS and Federal Courts have already ruled that governments can count as charities for the purpose of the federal charitable deduction even when the donor receives a full state or local tax credit in return.

Let the games begin: Tax plan opens new opportunities for taxpayers and state legislators to save key deductions - LA Times

Any thoughts comments? Perhaps time to spread the word so our legislators can also start thinking along these lines.

[josmyth]

Originally Posted by love_westchester

CA seems to be working on a workaround for the SALT deductions. Perhaps NY/NJ/CT can try something similar. It goes like this. Any individual taxpayer can get 100% credit towards a charitable contribution they make to the state. So if you calculate your state income tax and then make a charitable contribution in the same amount you essentially get a federal deduction for that "charitable" contribution. IRS and Federal Courts have already ruled that governments can count as charities for the purpose of the federal charitable deduction even when the donor receives a full state or local tax credit in return.

Let the games begin: Tax plan opens new opportunities for taxpayers and state legislators to save key deductions - LA Times

Any thoughts comments? Perhaps time to spread the word so our legislators can also start thinking along these lines.

Sounds too good to be true. I will have to do some research.

[LeavingNYCfast]

Originally Posted by love_westchester

We are still a few years away from moving to FL. Bracing for the tax plan impact on RE prices in Westchester. Has anyone heard anything anecdotally on what might be starting to happen here?

As somebody who started looking for a house just before the tax debacle got going I can tell you that so far the listing prices are not reflecting any change. We will probably have to see what actual sale prices start looking like over the next month or two but clearly sellers are not tempering their expectations. I'm hoping that changes soon!

[ltjbukem73]

it's going to take sellers a few months, like 4+ before they come to the realization..and brokers will likely have their own spin on it.

this article basically pertains to every lower westchester town...:

https://www.nytimes.com/2017/12/17/n...-tax-bill.html

[ponytrekker]

Originally Posted by Dmc197

Liberal Democrats complaining about their taxes being raised. You can't make this stuff up...

Where was the outrage when the Dems did this for 40+ years? Crickets

Raising taxes to give poor people food is cool. Raising taxes to give Trump's kids a billion is a dick move.