$30K in Standard Deduction

[Coronita]

I still don’t get after decades of seeing how our government works, people still think there is one single “silver bullet” catastrophic/apocalyptical, earth shattering new tax law change forced by the government will drastically adversely affect home prices. It’s like some folks are desperately hoping for an apocalypse in order to be able to obtain home ownership.

I see the only way we get an huge housing correction is if the government implements policies that enables the most vile and financially irresponsible debauchery from the a majority of the financially irresponsibles in this country….And that happens when the government provides the necessary financial tools for your average financially irresponsible person in this country to hang themselves on their own financial noose. Government doesn’t need to “force” anything on people to cause them financial distress…Given tools, people in this country are fully capable of doing it to themselves…

The best way to ruin people financially is to allow people spend like drunks and for them to commit financial suicide themselves, by giving them the illusion they have more money then they really do, and can spend more money than they really should without any consequences….Passing more unfavorable tax laws that reduces income probably has the opposite effect, as it would piss off your average American, and they would be more watchful/defiant and not act/do financially irresponsibly. , they’ll take on more work for more income, they’ll cut corners elsewhere in their budget, they’ll cheat on their taxes, they’ll do everything to remain defiant. They won’t go down, out of spite. But extend a credit line to them, yeah they’ll blow it.

It’s like getting people financially drunk such that that don’t make very good decisions. We’re not there yet. Short of a restart of irresponsible borrowing where irresponsible americans who otherwise has no business buying a home, can once again borrow money they really can’t afford to pay back, to buy a home they really can’t afford, I don’t see a massive correction. Why would the majority of the home ownership among the stronger financial hands right now feel compelled to sell right now? They got in at the lowest rates, lowest payments, in many cases, lower than rent…And especially if we have any meaning inflation, their 30 year locked in payment was look like a walk in a the park…..

But, irresponsible borrowing..it’s coming..probably….

[SK in CV]

[quote=ltsdd]Good info on what this tax plan means:

http://www.msn.com/en-us/money/taxes/americans-may-soon-kiss-these-lucrative-individual-tax-deductions-goodbye/ar-BBAq2JM%5B/quote%5D

That article is written by someone who doesn’t know how taxes work. The actual plan is less than a page long. Better to go directly to what Treasury issued and make your own guesses about what it means. (e.g. article says alimony deduction and student loan interest may go. Fake news, nothing in what Treasury issued to even guess that’s part of the plan.)

[spdrun]

flu- the bubble is being driven by other forms of easy money (margin debt, portfolios growing for down payments, 2% down loans courtesy of Mel “the Skell” Watt).

As far as the tax plan, Mr. Market seems to think it’s a big ‘ol snooze. Glad the Trump Bump is losing its effect.

[no_such_reality]

The market is snoozing because they know this is Trump’s trial balloon and not an actual proposal or anything else that as even a margin of a chance of passing.

[Coronita]

[quote=spdrun]flu- the bubble is being driven by other forms of easy money (margin debt, portfolios growing for down payments, 2% down loans courtesy of Mel “the Skell” Watt).

As far as the tax plan, Mr. Market seems to think it’s a big ‘ol snooze. Glad the Trump Bump is losing its effect.[/quote]

If you say so.

I’ve disconnected from here for some time, because none of the doom and gloom scenarios people have predicted materialized. Can’t beat the system, join it.I’m having too much fun elsewhere.

One thing is fairly certain. The same folks that missed the boat the last time will most likely will be the same folks that miss the boat this time. Just like the old RE adage about “it’s always a good time to buy a house”, a lot of people think the complete opposite.. “it’s never a good time to buy a house”.

Have fun waiting guys.

[Anonymous]

[quote=no_such_reality]The market is snoozing because they know this is Trump’s trial balloon and not an actual proposal or anything else that as even a margin of a chance of passing.[/quote]

It’s not a “trial balloon” – it’s a loose collection of unworkable ideas that have superficial appeal to his base.

Trump will never actually make a formal proposal on taxes, on healthcare, on anything big.

Because he’s dug himself into a huge hole by making outrageous and completely unfeasible promises. It’s the same old Republican themes amplified by Trumpian-level bullshit: lower taxes while reducing the deficit while increasing military spending…with a few Trump extras like increasing infrastructure spending.

He can’t make an actual proposal with these parameters because it would be exposed as laughably unfeasible, and the the last thing he wants is to be accountable.

So he’ll defer it to congress, like he did with healthcare. It will flounder and Trump will blame everyone else.

This is the “leadership” we are going to see for the next four years.

[Coronita]

[quote=harvey][quote=no_such_reality]The market is snoozing because they know this is Trump’s trial balloon and not an actual proposal or anything else that as even a margin of a chance of passing.[/quote]

It’s not a “trial balloon” – it’s a loose collection of unworkable ideas that have superficial appeal to his base.

Trump will never actually make a formal proposal on taxes, on healthcare, on anything big.

Because he’s dug himself into a huge hole by making outrageous and completely unfeasible promises. It’s the same old Republican themes amplified by Trumpian-level bullshit: lower taxes while reducing the deficit while increasing military spending…with a few Trump extras like increasing infrastructure spending.

He can’t make an actual proposal with these parameters because it would be laughably bad, and the the last thing he wants is to be accountable.

So he’ll defer it to congress, like he did with healthcare. It will flounder and Trump will blame everyone else.

This is the “leadership” we are going to see for the next four years.[/quote]

And exactly nothing is going to get done… I love it!

Flu, out (mic drop)

[spdrun]

flu – if you think the markets will always go up, it’s bubble mentality.

It’s “always a good time to buy” except some times were better than others. 2007 might have been good as compared to now (in some cities), but buying in 2009 was better.

[no_such_reality]

[quote=flu][quote=harvey][quote=no_such_reality]The market is snoozing because they know this is Trump’s trial balloon and not an actual proposal or anything else that as even a margin of a chance of passing.[/quote]

It’s not a “trial balloon” – it’s a loose collection of unworkable ideas that have superficial appeal to his base.

Trump will never actually make a formal proposal on taxes, on healthcare, on anything big.

Because he’s dug himself into a huge hole by making outrageous and completely unfeasible promises. It’s the same old Republican themes amplified by Trumpian-level bullshit: lower taxes while reducing the deficit while increasing military spending…with a few Trump extras like increasing infrastructure spending.

He can’t make an actual proposal with these parameters because it would be laughably bad, and the the last thing he wants is to be accountable.

So he’ll defer it to congress, like he did with healthcare. It will flounder and Trump will blame everyone else.

This is the “leadership” we are going to see for the next four years.[/quote]

And exactly nothing is going to get done… I love it!

Flu, out (mic drop)[/quote]

LOL, harvey I have to give you that one. I didn’t go look at what the WH actually provided until this morning. I looked at what all the media sources were saying.

What are they all reporting on? That’s barely a collection of campaign wishes.

[dumbrenter]

[quote=no_such_reality]The market is snoozing because they know this is Trump’s trial balloon and not an actual proposal or anything else that as even a margin of a chance of passing.[/quote]

Was more focused on what this means to rents & property prices in San Diego, but this is interesting! So no major decision is already priced in then

[dumbrenter]

I was assuming (I don’t know why.. have no basis here) that the homeowners across CA 56 from Carmel Valley to Carmel Mtn. had itemized deduction that were between $12k and $30k and this might affect them or future homeowners. If they itemize to more than $30K this would not affect them at all.

[quote=harvey]It would depend on what other deductions are eliminated or reduced: mortgage interest, property taxes, state taxes?

If the plan was simply to raise standard deduction and eliminate mortgage deduction, I don’t think your specific numbers wouldn’t impact most SD homeowners enough to influence prices.

If other itemized deductions are eliminated as well, that would mean raising taxes on much of the upper middle-class and effectively eliminating federal taxes for most of the lower middle class…remember the disdain for the the 47% that “don’t pay any taxes”? It will never get through congress.

The “simplify taxes” agenda is just another part of the schtick that will accomplish nothing. The basic 1040 stuff like W2 income and typical the deductions I listed above aren’t what makes taxes complicated. Taxes become complicated when one has business income. And that will not change.

So enjoy the show, but don’t let concerns about the possible outcomes influence your real estate investment decisions. It’s all just theatre.[/quote]

[FlyerInHi]

If your deduction is the same rent or buy, then it takes away the advantage of buying. RE agents lose that selling point which they push very hard as “you can write it off” (as if you were a big shot), so all else being equal it should affect real estate.

Here’s the 1 page proposal that looks it was written by a “standard retard” as Ann Coulter would put it.
http://www.cnn.com/2017/04/26/politics/white-house-donald-trump-tax-proposal/

[SK in CV]

Confirmed today by WH, 401k plans are out as part of this plan, even though not mentioned in yesterday’s release. Presumably referring to current deferrals, not monies already in plans. Why? Because $18,000 deferrals don’t mean shit to really rich people.

[SK in CV]

[quote=harvey]

The “simplify taxes” agenda is just another part of the schtick that will accomplish nothing. The basic 1040 stuff like W2 income and typical the deductions I listed above aren’t what makes taxes complicated. Taxes become complicated when one has business income. And that will not change.
.[/quote]

That’s a great point but it’s still way more complicated than just “business” income. It’s the source of the business income, the type of entity where the business income came from. Is it business income or investment income? Passive or active? With or without active participation, with or without material participation. Are there tax preferences used in arriving at the income amount? There are 20 different lines for non-wage income on the 1040, and many of them include many types of income. And then, there are an additional 13 lines of adjustments to income, many of those including different types of adjustments. Tax returns aren’t complicated because of too many rates. They’re complicated because writing tax law is complicated. Way too complicated for Donald Trump.

[dumbrenter]

[quote=SK in CV]Confirmed today by WH, 401k plans are out as part of this plan, even though not mentioned in yesterday’s release. Presumably referring to current deferrals, not monies already in plans. Why? Because $18,000 deferrals don’t mean shit to really rich people.[/quote]

small blessings for poor folks like me! getting something in return now.

[Author]

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