New tax plan

[moneymaker]

Guess I won’t be buying any expensive house. Not sure if it helps me or hurts me.

[moneymaker]

I guess if one buys an average house and puts atleast 10% down, then would not be a problem, I’m sure the 500k max is the loan balance and not the home value/price.

[spdrun]

Is it 500k *maximum* deductibility, or does deduction cliff to zero after 500k+ loan balance?

[kev374]

this may be a good thing, home ownership is subsidized too much and the benefit goes only to the affluent as most people in lower cost areas don’t use the mortgage interest deduction anyway since they don’t itemize. There is no reason why society should subsidize wealth building by the fat cats in our society.

And for the record anyone who can afford to comfortably buy the average SoCal home is by definition a fat cat, average list price in OC is $750k, are you F-ing kidding me?

[bewildering]

The loss of state income tax deduction will mean net loss for me. This plan hits upper middle class hard.

Basically, I am paying tax on my state tax. Cheers assholes.

[Anonymous]

It’s clearly designed to be a handout to the wealthy while at the same time a punishment for blue states.

And of course there is no regard for balancing the budget.

Pass-through income capped at 25% is a big win for top income earners. It will be interesting to see how many executives become consultants instead of employees.

Loss of state tax deduction hits CA and NY, but of course they they left property tax deduction in for TX.

Real estate limits ding coastal states.

Overall it’s reckless, cynical, and partisan.

Yup, sounds like a Republican plan.

[plm]

I calculated the numbers and it seems to be a wash for married 400K income. Loss of state tax deduction offset by increased standard deduction and lower tax brackets. If you add in the removal of AMT, the new plan should be lower.

But if you live in a low tax state, then you will do much better.

I think it hurts home owners though, since the mortgage interest deduction might not apply any more if standard deduction is better.

[andymajumder]

I think its premature to think anything in its current form will pass. Homebuilders association, national realtors association, small business association have all come out against the plan. The biggest risk the plan in its current form is that it will hit the coastal housing markets hard, effectively this increases the cost of buying a home in these regions significantly and will crash the market which in turn will affect economy and job losses for folks down the chain.

[scaredyclassic]

i hate this plan. the 1 bright side of the election 4 me was i though trump would probably lower my taxes, like 62% probability.

i think ill pay more, esp w loss of child exemotion. having many kids and making $ is no good.

im actually pissed, this is our highest earnings years ever, over 400k, goddamn republicans in office and i cant catch a break.

plus, old posters here once promised me never to worry about mtg. interest ded ever being eliminated. i knew i was right to predict disaster.

all i want is to not pay more. but i guess thats too much to ask

[kev374]

35% rate starts at 200k for singles and $1 million for married? Sounds like discrimination towards singles to me.

[plm]

[quote=kev374]35% rate starts at 200k for singles and $1 million for married? Sounds like discrimination towards singles to me.[/quote]

Married 35 percent rate starts at 260K. Discrimination of married people, not singles.

[ucodegen]

Here is a link to the actual bill.. and you will be able to download it for local copy.

https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf

Don’t know how long it will be there – odd naming, does not even refer to which session of congress. I couldn’t pull it directly from house bill records.

[spdrun]

The biggest risk the plan in its current form is that it will hit the coastal housing markets hard, effectively this increases the cost of buying a home in these regions significantly and will crash the market which in turn will affect economy and job losses for folks down the chain.

Risk or feature. Depending on whether you’re interested in investing in distressed property or not 🙂

[kev374]

[quote=andymajumder]it will hit the coastal housing markets hard, effectively this increases the cost of buying a home in these regions significantly and will crash the market which in turn will affect economy and job losses for folks down the chain.[/quote]

This is an excellent outcome. Regular people will be able to afford homes again just like it has been the case for many many decades before the speculative run-up starting in 2003.

[kev374]

[quote=plm]
Married 35 percent rate starts at 260K. Discrimination of married people, not singles.[/quote]

Married people don’t need more breaks, they have had enough over the years especially those with kids. Singles have been the biggest contributors income percentage wise.

[Author]

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