Author Topic: SALT Deduction  (Read 3338 times)

0 Members and 1 Guest are viewing this topic.

Online irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2055
  • -Received: 3514
  • Posts: 19964
  • 3CWG
Re: SALT Deduction
« Reply #60 on: April 15, 2019, 02:09:38 PM »
Why not just look at your effective tax rate difference between 2017 and 2018?  For 2018, Line 15 divided by Line 7.  For 2017, Line 63 divided by Line 22. 

Thanks. I was more talking about the differences in the bracket, deductions, exemptions, credits, AMT etc.

Using tax divided by income, for 2017 I get 11.1% and for 2018 I get... 11.2%.

Man... Trump got me for .1% higher taxes. :)

0.1% increase when your agi increased 10%?  sounds like a win to me  :)

Why would that be a win..it's literally the same unless they went up a bracket

They didn't pay the same amount...they paid the same effective rate.

if my agi last year is $150k and my effective tax rate is 10%, and the next year i make $165k (10% more), and my effective tax rate is still 10%, then that's a win because without the trump tax plan your effective rate would increase because a larger percentage of your income is going to be taxed at the marginal rate from that bracket.

It depends on the bracket margins. Assume I stayed within the same bracket, it's a push right?

That's why I wanted to know the particulars.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 303
  • -Received: 568
  • Posts: 9537
Re: SALT Deduction
« Reply #61 on: April 15, 2019, 02:17:21 PM »
So I was right. The cards are stacked against us. We pay more and we don’t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

California and New York is like funding the US. But we got deeply shafted with the SALT reduction.


Online irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2055
  • -Received: 3514
  • Posts: 19964
  • 3CWG
Re: SALT Deduction
« Reply #62 on: April 15, 2019, 02:23:23 PM »
Isn't the dependents exemption removal worse than the SALT reduction if you have kids? The child credit doesn't even make up for that.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

Offline Irvinecommuter

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 575
  • -Received: 484
  • Posts: 5046
Re: SALT Deduction
« Reply #63 on: April 15, 2019, 02:25:21 PM »
So I was right. The cards are stacked against us. We pay more and we don’t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 217
  • -Received: 211
  • Posts: 1090
Re: SALT Deduction
« Reply #64 on: April 15, 2019, 02:43:41 PM »
Why not just look at your effective tax rate difference between 2017 and 2018?  For 2018, Line 15 divided by Line 7.  For 2017, Line 63 divided by Line 22. 

Thanks. I was more talking about the differences in the bracket, deductions, exemptions, credits, AMT etc.

Using tax divided by income, for 2017 I get 11.1% and for 2018 I get... 11.2%.

Man... Trump got me for .1% higher taxes. :)

0.1% increase when your agi increased 10%?  sounds like a win to me  :)

Why would that be a win..it's literally the same unless they went up a bracket

They didn't pay the same amount...they paid the same effective rate.

if my agi last year is $150k and my effective tax rate is 10%, and the next year i make $165k (10% more), and my effective tax rate is still 10%, then that's a win because without the trump tax plan your effective rate would increase because a larger percentage of your income is going to be taxed at the marginal rate from that bracket.

It depends on the bracket margins. Assume I stayed within the same bracket, it's a push right?

That's why I wanted to know the particulars.

let's assume married, filing jointly with the same 2017 $150k -> 2018 $165k agi. 

before the trump tax plan, you're in the 25% bracket over $75,900 agi.  in 2018, you're paying 22% for over $77,400.  if your agi was $150k again this year you'd have a tax cut - easy math there.

but to explain my point - let's use your example with round numbers in terms of tax rates.  at $150k, 10% effective tax rate is $15k in taxes last year.  at $165k, 10% effective tax rate is $16.5k, which is a $1.5k difference.  except if you made $165k and the tax code didn't change with trump, you would have paid 25% on that extra $15k in agi, or $3,750.  that's oversimplifying it, but if your agi is increasing, all other things equal, your effective tax rate will be increasing due to the tax brackets increasing as well.  so paying the same effective tax rate with an increasing agi is a good thing.

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 217
  • -Received: 211
  • Posts: 1090
Re: SALT Deduction
« Reply #65 on: April 15, 2019, 02:46:46 PM »
So I was right. The cards are stacked against us. We pay more and we don’t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.
hey eyephone is not a victim, he's just pointing out how unfair it is for us rich californians to subsidize all those stupid flyover states that nobody cares about

Offline Irvinecommuter

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 575
  • -Received: 484
  • Posts: 5046
Re: SALT Deduction
« Reply #66 on: April 15, 2019, 02:48:07 PM »
So I was right. The cards are stacked against us. We pay more and we don’t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.
hey eyephone is not a victim, he's just pointing out how unfair it is for us rich californians to subsidize all those stupid flyover states that nobody cares about

Except he is pointing out that California and NY are subsidizing the rest of the country and got shafted in the new tax deal...which are actual statements of fact.

Whereas conservatives claiming that they have been on the wrong end of the stick considering what has happened in the last 50-60 years is just hilarious.

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 217
  • -Received: 211
  • Posts: 1090
Re: SALT Deduction
« Reply #67 on: April 15, 2019, 03:28:07 PM »
So I was right. The cards are stacked against us. We pay more and we don’t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.
hey eyephone is not a victim, he's just pointing out how unfair it is for us rich californians to subsidize all those stupid flyover states that nobody cares about

Except he is pointing out that California and NY are subsidizing the rest of the country and got shafted in the new tax deal...which are actual statements of fact.

Whereas conservatives claiming that they have been on the wrong end of the stick considering what has happened in the last 50-60 years is just hilarious.

you yourself just said you paid the same amount of taxes and others on this board have said they got tax cuts....if that's being shafted, give me the whole 9 yards baby

Offline qwerty

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2424
  • -Received: 1541
  • Posts: 7030
Re: SALT Deduction
« Reply #68 on: April 15, 2019, 04:17:46 PM »
if I would have applied the 2017 effective federal tax rate to my 2018 income I would have paid 27k more than I did for 2018.

God bless Donald trump!!  :-)

Don’t agree with everything he does or says but I’ll take the 27k in savings!

The following member(s) thanked this post:


Offline Mety

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 111
  • -Received: 125
  • Posts: 1022
Re: SALT Deduction
« Reply #69 on: April 15, 2019, 04:45:26 PM »
Man, seems like most people are benefiting from this new tax plan. I thought I was going to get hit, but surprisingly benefiting more also. Maybe I should have bought a bigger house.  ;D

The following member(s) thanked this post:


Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 303
  • -Received: 568
  • Posts: 9537
Re: SALT Deduction
« Reply #70 on: April 15, 2019, 06:31:47 PM »
Man, seems like most people are benefiting from this new tax plan. I thought I was going to get hit, but surprisingly benefiting more also. Maybe I should have bought a bigger house.  ;D

There’s no tax incentive to buy a bigger house like before.

Offline fortune11

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 181
  • -Received: 210
  • Posts: 1764
Re: SALT Deduction
« Reply #71 on: April 15, 2019, 06:32:27 PM »
As IC said , perception is KEY . This tax plans after the refunds etc have been posted , still doesn’t poll well.

By next year, it will be old news and won’t matter for 2020

Another prediction - people believe corporate tax cut is here to stay . They maybe in for a surprise depending on 2020 results

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 217
  • -Received: 211
  • Posts: 1090
Re: SALT Deduction
« Reply #72 on: April 15, 2019, 06:40:01 PM »
almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

Offline Kenkoko

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 53
  • -Received: 75
  • Posts: 330
Re: SALT Deduction
« Reply #73 on: April 16, 2019, 03:14:26 AM »
I've got to hand it to Trump. He has everyone so distracted arguing over the insignificant amount of tax cut (or non-tax cut for some) that nobody is noticing the sleight of hand magic our mega companies are pulling off.

Under Trump's tax cut, 60 Fortune 500 companies avoided paying all federal income tax in 2018 (with their total average effective tax rate being roughly -5%)

Overall, In 2018, corporations paid just 7% of their profits as federal taxes.

Keep arguing over the measly amount you saved or didn't save. It's really meaningless since we are all getting robbed.

https://finance.yahoo.com/news/companies-paying-zero-taxes-trump-law-155944124.html

The following member(s) thanked this post:


Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 303
  • -Received: 568
  • Posts: 9537
Re: SALT Deduction
« Reply #74 on: April 16, 2019, 09:20:05 AM »
Man, seems like most people are benefiting from this new tax plan. I thought I was going to get hit, but surprisingly benefiting more also. Maybe I should have bought a bigger house.  ;D

There’s no tax incentive to buy a bigger house like before.

Mety buy a bigger house and then let us know if there is additional tax savings. Also, send your kids to online elementary school. Then let us know your feedback. (re: your comment replacing regular teachers with online teachers)
Jk

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Related Links

Recent Posts