SALT Deduction

What happened to the fake middle tax plan that was floated by the GOP before the midterms?

Morekas keep throwing the two peace sign in the air.
 
eyephone said:
morekaos said:
Another one would be nice but so far a like the one we got.
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Just say it was a fake promise by the Republicans to try to get votes for the midterms.
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OK, " it was a fake promise by the Republicans to try to get votes for the midterms. "..are you telling me politicians lie to influence voters?  Fetch me a fainting couch I think I'm getting the vapors...
 
morekaos said:
eyephone said:
morekaos said:
Another one would be nice but so far a like the one we got.
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Just say it was a fake promise by the Republicans to try to get votes for the midterms.
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OK, " it was a fake promise by the Republicans to try to get votes for the midterms. "..are you telling me politicians lie to influence voters?  Fetch me a fainting couch I think I'm getting the vapors...
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As long as you admit it. I?m okay with that. 

 
So if this SALT thing goes back to how it was in 7 years, those who are paying less taxes this time will be paying more taxes then?



 
No, currently the changes to AMT and the lower brackets offset the loss of SALT. All things being equal, if  they bring back the SALT deductions then it would lower our taxes more.
 
morekaos said:
No, currently the changes to AMT and the lower brackets offset the loss of SALT. All things being equal, if  they bring back the SALT deductions then it would lower our taxes more.
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morekaos said:
woodburyowner said:
morekaos said:
OK, did my taxes over the weekend and spent the day with my CPA.  As I suspected and as he told me last year...TAX CUT.  I will not share specifics but his explanation was that the brackets were not only lowered but widened,  AMT reduction, and higher child credits helped immensely.  My mortgage interest write off remained the same as my mortgage is grandfathered in and under $750k anyway.  He has done over 25 returns already and the results were much the same.  Even with the elimination of SALT my tax refund increased nicely.  Thank you Mr. President!!
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Sounds about right.  Most people don't understand how taxes work and just take a few talking points out of context. I'm confident my taxes will go down as well. 

It would be interesting to see in which hypothetical scenarios someones tax liability will go up with the new tax law.    I'm guessing they will be very atypical scenarios.  Anyone care to take a stab at it?
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Think if you live in a high tax state (Cali, NY) are a super high income earner (>$1M/year) and you have a high value property (>$1M taxable) and you have a significant mortgage (>$750k)  you are gonna take a hit.
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Isn't this the profile of a wealthy individual?  I thought the tax cut only was only for the rich!? 

All kidding aside, I think this person's liability would go down with the tax cut due to the shifted income brackets. 
 
Let?s say you make $2 million a year (w2), you are in the highest bracket, additionally, you just bought a $3 million dollar home ($35000.00 prop tax bill, $25000 in excess of your $10k limit). Let?s say you financed it (stupid but let?s say you got a $2m mortgage) you can now only write off the interest on the first $750k so that doesn?t help much. In this specific case without the SALT you probably would see your taxes rise but this guy is not atypical at all.
 
Just curious and because I'm too lazy to do the research, is the $750k limit on TOTAL loans? Or if I have more than that spread across properties but all less then $750k I can deduct the full amount?
 
eyephone said:
Also, we don?t know if he his business through a LLC.
With a Lower tax rate.
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It?s all relative to Morekas statement. We really don?t know if he runs the income through his own company with a lower tax rate than regular W2 earners. (Just keep that in mind)
 
I w2 it if you really care. The limit is $750k on the primary loan and I think it is up to $100k on a HELOC.
 
This whole discussion is pointless because we will have the data soon enough...Morekaos' individual return is irrelevant.

Meanwhile, the point of the tax cuts was not to give rich people more money back...it was to spurn growth and hiring...and yet...nothing.

The Trump administration?s $1.5 trillion in tax cuts appears to have not made any major impact on businesses? capital investment or hiring plans, according to a new survey.

A quarterly poll from the National Association for Business Economics published Monday found that some companies reported accelerating investments because of lower corporate taxes, but a whopping 84% of respondents said they had not changed their plans. That?s up slightly from 81% in the previous survey published in October, Reuters reports.

The White House had said the massive stimulus package, which cut the corporate tax rate to 21% from 35%, would boost business spending and job growth. The tax cuts that came into effect in January 2018 were the biggest overhaul of the U.S. tax code in more than 30 years.
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http://fortune.com/2019/01/28/trump-tax-reform-hiring-investment/
https://www.pbs.org/newshour/econom...s-tax-cuts-boost-hiring-most-companies-say-no

Meanwhile, our deficit has jumped 17% in 2018 ($779 billion). 
 
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