Posted on 09/27/2017 11:35:34 AM PDT by Jim Robinson
Why is everyone going apes_it crazy?
the last time the government messed with the deductions on real estate was the mid 80’s... and it destroyed the real estate market for a decade.
“That’s why you don’t put all your eggs in one basket or investment type. This plan gives the middle finger to all those big-mouth libs in NY, NJ and California that whined they were willing to pay higher taxes.”
This plan apparently gives the finger to middle-class homeowners!
Mondale had a competitive plan for that title.
I am not agreeing or disagreeing with anyone yet. I have some homework to do and need A LOT of details.
I have to study my own taxes from last year and check my numbers. I want to know what new tax bracket I am in. The article said that the child deduction would remain. It only mentions standard deductions not all deductions. So I don't know what is in the bill.
There must be a lot of FReepers that have inside information or a better researchers than me (quicker too). I don't know where to find all this data that leads people to these conclusions so fast.
I honestly do not know if I am for it or against it yet. And this thread has opinions and facts all over the board.
And no “sunsetting” provisions.
Doubling the exemption sounds good to me.
Most homeowners barely go over standard deductions due to low interest rates today. If you had a $120k loan (probably max for a couple making $40k), your interest is about $4k/year to start and falls off quickly. Assuming $2k property tax and $2k state tax, you’d have $8k to itemize, excluding donations. With standard deduction at $12.6k today, you’d have to donate at least $4.6k for that to even change the equation. Only reason this will be “neutral” for me is I make a lot so I have a high state income tax I get to deduct as well. But with the other tax brackets coming down and corp taxes dropping massively (good for my stocks), it’s still very net positive.
“That’s why you don’t put all your eggs in one basket or investment type. “
I should sell my home in order to diversify my investments?????
You’re so far off base I wouldn’t know where to begin.
Yeah..even though my Mom doesn’t know much about politics, she came into the room, heard Trump speaking and said “So how long will it take McCain and those other idiots to say they don’t support it?”
I think McCain at this point could care less about anything..all he cares about is ONE thing, and that is making Trump look bad. ANYTHING Trump supports McCain will come out and say he is against it..President Trump could say “Im for the 1st Amendment” and McCain would say “Im against it” McCain will die and his last words will be “I hate Trump”
If your only asset is the home you live in the doubling of the standard deduction makes up for the state income tax / lost deduction you no longer get.
“Most homeowners barely go over standard deductions due to low interest rates today. If you had a $120k loan “
LOL! Starter homes today are over $300k!
Is everyone reading the same article?
Deductions for mortgage interest and charitable giving would remain, but the plan seeks to end most other itemized deductions that can reduce how much affluent families pay.
The plan retains existing tax benefits for college and retirement savings such as 401(k) contribution plans.
The plan would seek to help families by calling for an increased child tax credit and opening it to families with higher incomes. The credit currently is $1,000 per child. Also proposed is a new tax credit of $500 to help pay for the care of the elderly and the sick who are claimed as dependents by the taxpayer.
The estate tax -- which is paid by those with multimillion-inheritances -- would be eliminated, a boon for wealthy individuals who inherit businesses, investments and real estate.
New benefits would be given to firms in which the profits double as the owners' personal income. They would pay at a 25 percent rate, down from 39.6 percent. This creates a possible loophole for rich investors, lawyers, doctors and others, but administration officials say they will design measures to prevent any abuses.
The mortgage interest deduction STAYS but if your standard deduction is much higher you HAVE NO NET EFFECT. Or you pay LESS.
Will people start to READ THE DETAILS before mouthing off?
Uh, no. The national median home value is $200,000. Starter homes would be well south of that.
That doesn’t make it less complicated. Or fairer.
“If your only asset is the home you live in the doubling of the standard deduction makes up for the state income tax / lost deduction you no longer get.”
Not really. I presently deduct about $24,000 and have $8,000 in personal exemptions.
Under this plan I get $24,000 deduction and lose the $8,000 personal exemptions.
Not sure why you quoted to me as that’s exactly what I said. I’ve been reading the updates as this thing bounces around as it’s central to my career
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