[quote=scaredyclassic][quote=flu]Are things really going to be that bad, if you factor in the ridiculous equity markets gain?
Yes, it will suck if you live paycheck to paycheck, have no investments, have no financial plan to invest…But I doubt many of us piggs are worker bees alone. Many probably are heavily invested too.
Does paying an extra few grand in taxes matter more than dow rising 400 points in a few days?
Just curious.[/quote]
theoretically, this tax plan significantly lowers your property values. itemizing loses value, flus real estate empire lises value[/quote]
Lower top marginal rates reduces the government subsidy for mortgages for medium and high wage earners. Same thing with the loss of the deduction for state taxes (and possibly property taxes). I don’t know if it will be significant, but the effects on residential real estate values could be material in some price ranges.
The financial markets are pretty much in the same trajectory they’ve been in for more than 8 years now.
If you’re at risk of not itemizing with a larger standard deduction, move all deductions into this year that you can. Or if you’re in a top marginal bracket, do the following:
Pay your 2nd half taxes now.
Make your January mortgage payment before the end of the year. If you pay it online, get it in by 12/31 and it will be reflected properly on your year end statement.
Get rid of stuff to goodwill now. Next year’s church donations now.
Business dues, investment expenses, etc. if you have deductible employee business expenses now if they can be accelerated.
If it’s likely you’ll owe state taxes, make an estimated tax payment of what you will now and deduct this year. (Be VERY careful with this one if you get any ACA premium tax credit, a refund next year is counted as income.) But be careful of AMT.
If you pay your own insurance premiums and have deductible medical expenses, make sure you pay Jan premium this month.
