Trump Tax Plan and Home Valuation

Donald Trump is a crook, he lost near a billion dollars in the 80's with bad realestate investments and using this lost to carry forward to never have to pay ANY federal income tax for 19 years. The lost is from other investors and institution that loan him the money, its not his own money that he lost. However, the lost of other people money allow him to carry the deductions for many years and not paying any future taxes.

Yet our legitimate deductions is taken away by his latest proposal of so call "Tax cut for the middle class." Any dummies believe this should just go and shoot yourself.
 
I thought this was a really good article in terms of the impact to the middle class.  Sure it makes some assumptions and the details are murky still but I think the article is fairly accurate based on what was represented yesterday and today.  This clearly affects a lot more people than CA, NY, NJ.  Sadly, our representative in Congress Mimi Walters is blindly supporting this legislation.  I suggest those who are being impacted reach out to her.
http://www.businessinsider.com/trump-tax-plan-raise-taxes-middle-income-families-2017-9
 
I'm torn.

On a philosophical level, I think the mortgage interest tax deduction is arbitrary, I think removing deductions/credits is a good idea in general, and I think the government already does a lot to unfairly subsidize home ownership to the expense of renters.

But personally, this could really increase my taxes.
 
hello said:
Sorry I disagree.  This will hurt Irvine and it will hurt many other areas in Orange County.  Many of us are using MID and the increase in the personal exemptions will only make renting more attractive.  Yes there are many cash purchases in Irvine, but the fact there are more cash buyers in Irvine will only soften the blow somewhat, if at all.  What is clear is that the proposed tax plan will make owning a house more expensive or less cheaper.  This WILL hurt housing in Irvine and everywhere else. 
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MID is minimal.  What did you do, put 2% down, lol.


 
test said:
hello said:
Sorry I disagree.  This will hurt Irvine and it will hurt many other areas in Orange County.  Many of us are using MID and the increase in the personal exemptions will only make renting more attractive.  Yes there are many cash purchases in Irvine, but the fact there are more cash buyers in Irvine will only soften the blow somewhat, if at all.  What is clear is that the proposed tax plan will make owning a house more expensive or less cheaper.  This WILL hurt housing in Irvine and everywhere else. 
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MID is minimal.  What did you do, put 2% down, lol.
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That's alot of money for 4 million dollars house.... :) :) :) :)
 
test said:
hello said:
Sorry I disagree.  This will hurt Irvine and it will hurt many other areas in Orange County.  Many of us are using MID and the increase in the personal exemptions will only make renting more attractive.  Yes there are many cash purchases in Irvine, but the fact there are more cash buyers in Irvine will only soften the blow somewhat, if at all.  What is clear is that the proposed tax plan will make owning a house more expensive or less cheaper.  This WILL hurt housing in Irvine and everywhere else. 
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MID is minimal.  What did you do, put 2% down, lol.
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How would you know how much he is saving with the MID?  If you assume 1M loan at a 33-35% tax bracket (which I do not think is far from normal for many Irvine owners), I would think this is not chump change.

I suppose you would also have to define what "minimal" is to you.  Is $100, $500, $1000 a month minimal?
 
aquabliss said:
http://money.cnn.com/2017/10/11/pf/romans-numeral-favorite-tax-breaks/index.html

This article says:
"Still, the White House says only three tax breaks will be preserved for sure: charitable contributions, mortgage interest and retirement savings."

So mortgage interest  deduction is preserved and confirmed  by the WH? Can't find that anywhere else.
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If you follow the position of the Heritage Foundation, you'll see that they are in favor of trashing the state and property tax deduction but maintaining the mortgage interest deduction. They have also been supporting of taxing employer based health insurance as income. The current administration has been using the Heritage Foundation as a blueprint for their own policies, so my assumption is that this is going to be what the tax proposal will look like.
 
nosuchreality said:
So if they treat employer provided health care as taxable income, are the premiums then deductible?
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There would be a tax credit. At least, that's the way this proposal has gone in the past. I've never seen a number for the credit but my guess is what they are looking for this time around is to allow for junk insurance (high deductible, low coverage, low limit plan) and a credit that would cover it. So basically insurance for ALL!!!! It just might not be insurance that is useful at all. Once you get a better plan, you'd be spending after tax $$ on it.
 
Well, looks like the Senate passed the budget and are trying to Fast Track the tax reform vote. Ran my numbers and this is going to cost me an extra $6K per year in federal taxes by not being able to itemize.

If someone can make an argument to convince me this tax reform is a good thing for us, please... I'm all ears.

So do we dump all liquid cash into the stock market since corp tax rates will be dropping to 20%?

 
rickr said:
Well, looks like the Senate passed the budget and are trying to Fast Track the tax reform vote. Ran my numbers and this is going to cost me an extra $6K per year in federal taxes by not being able to itemize.

If someone can make an argument to convince me this tax reform is a good thing for us, please... I'm all ears.

So do we dump all liquid cash into the stock market since corp tax rates will be dropping to 20%?
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Might be a good idea, but do keep emergency cash with the 6 months minimum as a start.
 
rickr said:
So do we dump all liquid cash into the stock market since corp tax rates will be dropping to 20%?
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I think this is already priced in.  It wouldn't surprise me if stocks had a correction afterwards.
 
Liar Loan said:
rickr said:
So do we dump all liquid cash into the stock market since corp tax rates will be dropping to 20%?
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I think this is already priced in.  It wouldn't surprise me if stocks had a correction afterwards.
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Good Point. Buy on rumors, sell on news
 
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