[quote=The Truth][quote=ctr70]Another thing for those high income earners who have portable businesses looking to move out of the state of CA to avoid the state income tax, is the cumulative effect of paying a state income tax. If you pay $30k a year in state income taxes, that is $300k over 10 yrs. And you invested that $30k saved every year on a down payment on a cash flow rental or a trust deed, you would have more like $500k+ over 10 yrs. So you are losing $500k over 10 yrs for staying in CA![/quote]
If you make say $250K as a couple – the place where new state tax increases begin to kick in – you’ll probably be paying somewhere north of $20K to the state. With a modest down payment, that annual amount would cover the mortgage on a palace in the Las Vegas area. If you are ‘portable’, the move effectively pays for your housing. But it’s Las Vegas and not Southern California…[/quote]
Don’t waste your time arguing. If it really is gonna hit you.. Pay the money and start educating yourself on what to do. The more I read, the more I talk to people, the more I realize the more options one has if one just gets out of the W2 mold…
The people aren’t willing to put the time/energy/effort to understand things. And even if they are, you have an uphill battle because people who have knowledge most readily don’t like to share…Gotta do your own work…
The surcharges kick in for $500k for a couple, $250k for individual, and if you can claim Head of Household, it’s $340k.
Fiscal cliff won’t kick in most likely to next year, and although it is possible for it to be retroactively applied, I doubt they will do it..Work from that assumption, you have 1 months left.
