Prepaying property tax

[Coronita]

[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]

For rental properties, doesn’t mortgage, property tax, and just everything else count on as cost of running your rental? So none of that changes right?

[SK in CV]

[quote=flu]
For rental properties, doesn’t mortgage, property tax, and just everything else count on as cost of running your rental? So none of that changes right?[/quote]

Yes, but. None of that changes, but it doesn’t mean the value of your properties are unchanged. If you own single family residences as rentals, they’ll sell based on what other single family residences are selling for, not based on ROI.

The value of multi-unit rentals may go up with this tax change. Lower taxes on passive income can increase ROI.

[Coronita]

[quote=SK in CV][quote=flu]
For rental properties, doesn’t mortgage, property tax, and just everything else count on as cost of running your rental? So none of that changes right?[/quote]

Yes, but. None of that changes, but it doesn’t mean the value of your properties are unchanged. If you own single family residences as rentals, they’ll sell based on what other single family residences are selling for, not based on ROI.

The value of multi-unit rentals may go up with this tax change. Lower taxes on passive income can increase ROI.[/quote]

I’m not so convinced all these tax increases, as annoying as they are, are really devastating.

First of all, for many people, mortgage interest deduction a primary isn’t going to be affected. The only ones affected are those new buyers that take out a mortgage larger than $500k. Old mortgages are grandfathered, right? I mean, are there many folks taking out jumbo loans these days? Maybe. I don’t know. Second, property tax is now capped at $10k. CA property tax is roughly 1%. So this only impacts people with an assessed value more than 1 million. I’m sorry, if you own a $1.5 million home, and are in a financial disarray because you can’t deduct and extra $5000 in property taxes for the entire year, and you weren’t already bending over in AMT, you got much bigger problems to worry about.

That leaves state tax deductions. Maybe I’m missing something. But lets just say someone’s AGI is $200k. State income taxes, 10%. So that’s an extra $20k taxable income versus last year… Tax rate of say 39% (which is probably much higher than what it is actually), that’s like $7800 extra taxes… Yes, it’s a painful check to write…But for someone with an AGI of $200k, is this really going to drastically affect one’s well being? I mean, these were the same arguments at one point said to some of us a few years ago too.

Again, don’t get me wrong, I think Trump is horrible, and the GOP has gone off a deep end, and this tax “reform” is ridiculous… I’m just not not seeing how this tax “reform” is going to be as doom and gloom as people make it out to be. It’s painful and annoying at worst imho.

So this might affect a handful of would be buyers who no longer have the budget to buy a SFH …. Ok, that sucks. Doesn’t this keep rental demand (and therefore rent prices) high? Doesn’t this create a floor for how far home prices may fall, given that if it’s cheaper to own than rent, people will buy?

And I’m only talking about these folks whose AGI is at this level… Not the folks that make much less, which I would agree get hit harder….No question about that.

[SK in CV]

[quote=flu]

I’m not so convinced all these tax increases, as annoying as they are, are really devastating.

[/quote]

I agree. Not devastating to any individuals, except in rare situations. Low income people can get hit with higher taxes. For those making $30K with 3 kids, losing $500 can be devastating. It could also be devastating to

The problem is not so much with itemized deduction changes. Outside sales people and W-2 truckers could get killed. I can think of a few others that will also.

A HUGE windfall for some wealthy and ALL uber-wealthy.

It could be devastating for what it portends, and what it holds for the economy down the line. It’s pretty similar to the tax cut from the late 20’s. Something bad happened after that.

[Coronita]

[quote=SK in CV][quote=flu]

I’m not so convinced all these tax increases, as annoying as they are, are really devastating.

[/quote]

I agree. Not devastating to any individuals, except in rare situations. Low income people can get hit with higher taxes. For those making $30K with 3 kids, losing $500 can be devastating. It could also be devastating to

The problem is not so much with itemized deduction changes. Outside sales people and W-2 truckers could get killed. I can think of a few others that will also.

A HUGE windfall for some wealthy and ALL uber-wealthy.

It could be devastating for what it portends, and what it holds for the economy down the line. It’s pretty similar to the tax cut from the late 20’s. Something bad happened after that.[/quote]

Agreed. Which is why I sort of chuckle at the irony here. I have a feeling the ones that are going to get hit the most, some of them probably voted for Trump and wanted this without really knowing about it…
(BG where are you?.. Lololol)

I mean how many senators actually read the 500 page tax reform before voting on it….just like how many read the actual ACA before folks voted on it. Maybe one of these days Congress can actually start doing things not out of spite for the other party. Lol.

I think the only positive.to come out of this is everyone this time feels a certain level of annoyance and financial pain such that next time, we.are a little more careful asking for “tax reform” or taxing more… And by financial pain, I mean almost Everyone.

Carenter, you were wishing for a repeal of prop 31 and felt people should be taxed more on their propety…. Well…wish granted… everyone is now…. Even folks with primary homes. Your property tax deduction is now capped. Lol…be careful what you wish for…

[Anonymous]

[quote=flu]I’m not so convinced all these tax increases, as annoying as they are, are really devastating.[/quote]

Not devastating, just a laughably transparent, multi-faceted scam:

– It was sold as middle class tax cut. It is not.

– It will massively increase the deficit.

– It will cause the healthcare system to be even more dysfunctional.

All for no benefit, except to the 1-percenters.

It’s certainly no better than what we already have, so what’s the point?

I already answered my question.

[scaredyclassic]

Ok then.

I need to become wealthy, now.

[Coronita]

[quote=scaredyclassic]Ok then.

I need to become wealthy, now.[/quote]

You already are!….In the eyes of the IRS and our federal government….At least they sure are going to tax you that way!

Welcome to our special club, called the “you’re fucked tax club”… While you’re only a 1st year member, unfortunately in this club, membership is lifetime and irrevocable.

The next thing you’ll also learn is that even if the political winds change in 2018, and tax laws are “reformed” again, they’ll figure out a way to fuck you over again…..Same shit, different special interest political party….

[Coronita]

[quote=harvey][quote=flu]I’m not so convinced all these tax increases, as annoying as they are, are really devastating.[/quote]

Not devastating, just a laughably transparent, multi-faceted scam:

– It was sold as middle class tax cut. It is not.

– It will massively increase the deficit.

– It will cause the healthcare system to be even more dysfunctional.

All for no benefit, except to the 1-percenters.

It’s certainly no better than what we already have, so what’s the point?

I already answered my question.[/quote]

Most “tax reform” is almost always a scam, from both sides. It’s politician trying to redistribute wealth among the middle class, leaving the poor and extreme rich alone. It happens from both parties.

[Anonymous]

[quote=flu]Most “tax reform” is almost always a scam, from both sides. It’s politician trying to redistribute wealth among the middle class, leaving the poor and extreme rich alone. It happens from both parties.[/quote]

Lol, of course you have no facts to support that claim. You just repeat it because it fits with your “poor me” narrative.

A simple glance at the policies and legislation from the two parties will show how ridiculous that claim is. The policy differences on the estate tax alone proves you completely wrong.

[FlyerInHi]

[quote=harvey][quote=flu]Most “tax reform” is almost always a scam, from both sides. It’s politician trying to redistribute wealth among the middle class, leaving the poor and extreme rich alone. It happens from both parties.[/quote]

Lol, of course you have no facts to support that claim. You just repeat it because it fits with your “poor me” narrative.

A simple glance at the policies and legislation from the two parties will show how ridiculous that claim is. The policy differences on the estate tax alone proves you completely wrong.[/quote]

Not just the “poor me” narrative, but the “I’m ideologocally adrift” narrative. So everything, all parties, all policies are “the same.”

And for those parents and young people who value higher education, tuition waivers will be taxable income.
https://www.insidehighered.com/news/2017/11/07/grad-students-and-policy-experts-say-taxing-graduate-students-tuition-waivers-would

[scaredyclassic]

cant they just lower tuition to certain grad students to $1.00?

im pretty sure higher ed is smart enough to figure this shit out. theyve been scamming the gov 4 years, theyll work around it

[Coronita]

[quote=harvey][quote=flu]Most “tax reform” is almost always a scam, from both sides. It’s politician trying to redistribute wealth among the middle class, leaving the poor and extreme rich alone. It happens from both parties.[/quote]

Lol, of course you have no facts to support that claim. You just repeat it because it fits with your “poor me” narrative.

A simple glance at the policies and legislation from the two parties will show how ridiculous that claim is. The policy differences on the estate tax alone proves you completely wrong.[/quote]

Harvey. I’m not the one complaining about tax increases . I think many of you are, lol….
I am laughing my ass off because it finally hit home for the rest of you that thought it couldn’t be you.

Personally, I don’t think things are going that bad, considering the country is burning. Lol….

Still waiting for either party to deal with foreign income earned abroad by corporations and repatriation….oh wait…never happened….because…well, we know why.

But it’s not like these tax increases are doom and gloom….you’ll get use to it.

With that, bye bye. I’ll bow out of the “my taxes are increasing because I need to subsidize Christian fundamentalists in the south” pity party that’s going on here on a couple of threads….

[SK in CV]

[quote=flu]
Most “tax reform” is almost always a scam, from both sides. It’s politician trying to redistribute wealth among the middle class, leaving the poor and extreme rich alone. It happens from both parties.[/quote]

In fairness, there hasn’t been tax reform since 1986, and that was very real. It was a transformative change in taxation in the US. The Dems have not even proposed anything I recall that they’ve called tax reform in the last 30 years except that which only applied to corporate taxes. Dems have never left the very rich alone. Both sides don’t do it. Tax rate changes aren’t tax reform.

[Anonymous]

[quote=flu]Harvey. I’m not the one complaining about tax increases . I think many of you are, lol….
I am laughing my ass off because it finally hit home for the rest of you that thought it couldn’t be you.[/quote]

I’m commenting on bad policy, not complaining about my personal taxes.

I certainly never expected a tax cut from Trump.

You read everything as a personal “pity party” because you see the world from that perspective.

Nothing has “hit me” – I’m actually tremendously blessed. I’d like to see policy that gives others a chance for the same.

[Author]

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