Trump Tax Reform and Home Prices
- Thread starter Goriot
- Start date
usctrojancpa
Well-known member
How about we wait to analyze this thing once it's actually passed. This bill will get passed around so many lobbyists that it'll change many times so I'll wait until it's passed into law before I start even thinking about it.
oh man. what are all these terms and numbers? you guys are experts!
i currently own a $500K home and i get a pretty good tax return in april.
if i sell it and buy a $800K home with 20% downpayment, does it mean i won't be getting any better tax return?
of course, in case if this passes...
i currently own a $500K home and i get a pretty good tax return in april.
if i sell it and buy a $800K home with 20% downpayment, does it mean i won't be getting any better tax return?
of course, in case if this passes...
Irvine_is_awesome
New member
Assuming this bill passes. I have a question How do you know cutt off date is today? does it even apply if you are under contract but your new construction wont be built until April 2018. we just signed a contract for new contrcution last weekend. are we in luck?
paperboyNC
New member
I calculate that my taxes will increase over 50% under this "tax cut". Big load of BS I've ever seen from the party of tax cuts.
Happy to share the math by PM, but basically I get slammed by the eliminations of personal exemptions. Once you process all of the deductions, the rates are the same. Nothing makes up for the loss of personal exemptions.
Edit to add: apparently I missed the changes to the child tax credit when I did the math this morning. I still will owe more taxes under this "tax cut" but my child tax credit will go up to $1600 per kid and no longer be phased out so I'll only come out a little behind.
Happy to share the math by PM, but basically I get slammed by the eliminations of personal exemptions. Once you process all of the deductions, the rates are the same. Nothing makes up for the loss of personal exemptions.
Edit to add: apparently I missed the changes to the child tax credit when I did the math this morning. I still will owe more taxes under this "tax cut" but my child tax credit will go up to $1600 per kid and no longer be phased out so I'll only come out a little behind.
Irvine_is_awesome
New member
This wont be fair because you make the decision to pay a certain price for the home based on current market conditions, current tax laws, etc. Technically people who signed the contract should also be grandfathered in it.
Can someone look into it or post a link for the tax reform so we can read into it further?
Can someone look into it or post a link for the tax reform so we can read into it further?
J
jmoney74
Guest
Irvine_is_awesome said:
It's a blatant disregard for different market segments. I'm thinking the NAR will have some lobbying to do. They are really giving the finger to CA, NY, and other high priced areas.
sgip
Well-known member
I do love hearing the wailing and gnashing of teeth over how this unfairly impacts D-centered California and New York. It's really just as simple as the old saw reportedly said by the prolific bank robber Willie Sutton:
Q: "Why do you rob banks?"
A: "Because that's where the money is."
There's no other reason than that IMHO.
My .02c (however with the new gas tax, and this soon to be voted on tax overhaul, I'm likely going to have the sign off as "My .002c)
Soylent Green Is People
Q: "Why do you rob banks?"
A: "Because that's where the money is."
There's no other reason than that IMHO.
My .02c (however with the new gas tax, and this soon to be voted on tax overhaul, I'm likely going to have the sign off as "My .002c)
Soylent Green Is People
irvine buyer
Active member
felixcat said:
Read the bill and two things to note. 1) Acquisition indebtedness must be incurred on or before November 2nd. There is a binding contract exception whereby the written binding contract has to be fully executed BEFORE November 2nd and the close date has to be prior to January 1, 2018. 2) For refinances, the principal balance of the refinanced loan cannot exceed the principal balance of the qualifying loan if the loan was in excess of $500,000.
irvine buyer
Active member
Also, real property tax deduction will be limited to $10,000 for married filing joint. Effective January 1, 2018.
Irvine_is_awesome
New member
This whole section is not clear to me in the tax law.
BINDING CONTRACT EXCEPTION
.?In the case of a taxpayer who enters into a written binding contract before November 2, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, subparagraphs (A) and (B) shall be applied by substituting ?April 1, 2018? for ?November 2, 2017?.??
They have Jan date and April Date? and does the exception mean that 500K mortgage interet rule doesnt apply?
BINDING CONTRACT EXCEPTION
.?In the case of a taxpayer who enters into a written binding contract before November 2, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, subparagraphs (A) and (B) shall be applied by substituting ?April 1, 2018? for ?November 2, 2017?.??
They have Jan date and April Date? and does the exception mean that 500K mortgage interet rule doesnt apply?
irvine buyer
Active member
Unless its addressed separately, it appears that most of the provisions take effect next year
irvine buyer
Active member
The way I read it, the contract needs to have a COE date of December 31, 2017 or earlier. However, delays do happen in real estate transactions so as long as title transfers on March 31, 2018 or sooner you are okay.Irvine_is_awesome said: