Posted on 11/13/2018 5:33:07 AM PST by Sean_Anthony
I am not a tax professional so this did not really hit home for me until a few months ago. There are also new limitations on 2nd mortgage deductions. We currently own a two houses in Washington State. Our property tax on both of them have doubled in the last four years. We have been paying a high percentage of our income in state and local taxes and mortgage payments. We literally lost half of our deductions in 2018. I have been working night and day to get our less expensive property ready for us to move back into it and get our current home ready for a sale.
If we are unable to sell one of the houses in time to get a lot of cash by April 15 we are going to have big problems. I have calculated that we will not only owe many thousands of additional dollars in tax compared to 2017, but also thousands of dollars in penalties for not withholding enough of our income this last year. I have never used a tax professional previously, but will have to pay thousands this year for that as well.
So yes, I agree that this “tax cut” while being a stimulus for the economy when combined with massive now nondeductible increases in state and local taxes, not to mention higher nondeductible interest expenses is going to hit a lot of people much harder than they currently realize. This could easily become a massive train wreck this spring when people start trying to liquidate their assets to cover their higher tax liabilities.
Granted, I know many people who do not itemize who are getting a tax break even here in Washington. Most of them are Democrats. The odd thing about this tax legislation is that it targeted those of us who own assets that we worked like dogs our entire lives to accumulate. We were already being targeted by state and local governments. If you own assets... congratulations the government is coming for them. You are a cash cow as far Republicans and Democrats are concerned and you are the one who is going to pay.
Play with words all you want - their brand now has more seats in the House....are we gonna keep whining or are we going to get off our lazy asses and open our wallets to make things right next election?
Excellent points. Remember too, gridlock in Congress is often the most desirable state.
...gridlock in Congress is often the most desirable state.
Amendment I: Congress shall make no law...
They should have stopped right there.
Indeed the first to hoist the white flag.
Sadly, you are correct. The demonrat party is continuing barry soetoro’s agenda to transfor America. (Actually the globalist oligarch’s agenda barry embraces, to end the constitutional republic.) Demonrats do not accept the Constitutional Republic and are openly its enemies.
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