Removing the 401k deduction is on the table?
http://www.dailyherald.com/business...-needs-to-pay-for-tax-cuts-your-401k-may-help
http://www.dailyherald.com/business...-needs-to-pay-for-tax-cuts-your-401k-may-help
Trump Tax Plan and Home Valuation
- Thread starter rickr
- Start date
NEW -> Contingent Buyer Assistance Program
I don't see this as hurting Irvine. Irvine has lots of Chinese buyers who pay cash. They'll keep coming.
The personal deductions are going up, negating SOME of the property tax/mortgage interest that would have been taken.
Higher income earners were already not able to deduct property taxes due to AMT and it hasn't hurt Irvine one bit.
MAYBE they'll FINALLY be some pushback on ridiculously high mello that go up every year and I guess that MIGHT hurt those stuck with current mello that goes up yearly.
Baker Ranch's no mello didn't kill off Irvine homes from going up.
In the 80's car loans and credit cards were deductible same as houses and listening to all the naysayers and Debbie Downers we were surely headed into oblivion because no one would ever buy cars or charge on their credit cards again and it had no effect.
This affects a limited number of people, those with mortgage interest between $500k-$1M plus $100K home equity who aren't hit by ATM who won't get back what they lost with a higher personal deduction and lower bracket. Those people most likely have a lot of disposable income and can take the hit....... if not they are over extended. Some Chinese person will be happy to take their house, probably for cash.
MOST of the country does not have homes priced like Irvine. I know it's hard to imagine, but the world doesn't revolve around the OC and Irvine.
Never make long term investments based on taxes. You can never ever trust the government to not change things at the worst time.
No state AND no property tax deduction. If those add up to > $24k you are getting screwed. Also, the income ranges for the new brackets are not made clear but if you fall in the range for upper middle class you most likely will get screwed again. Not sure if AMT going away would take away some of that sting. Either make substantially more money or move to a place with low property taxes and no state taxes if you want to benefit from this new system. And after all that the new plan would balloon the deficit.
They are getting rid of the exemptions aswell so a family of 4 is about $16k and a family of 3 is $12k
So a family of 4 used to get a deduction of $16k lets say property tax and state tax was another $18k plus lets say $24k in mortgage interest. thats a write off of $58k
Trump tax
Take standard deductionof $24k
or itemize, that same family could do $24k in mortgage interest and thats it because they are getting rid of the personal exemptions so that is a tax write off loss of $34k and lets just say 25% thats a tax increase of $8500
ROFLMAO.
"Gary Cohn, the chief White House economic adviser, said Thursday that he "can't guarantee" middle-income families won't pay more in taxes under the new Republican tax proposal."
https://www.aol.com/article/news/20...n-will-lower-taxes-for-middle-class/23226502/
It would only affect certain states that are blue and most likely would not have supported the bill in the first place anyways. The majority would see a tax decrease financed by a larger deficit. If they do it through reconciliation, it might pass since the deficit hawks will probably be suddenly silent.
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.
Seems like they are trying to punish California and New York citizens.
Tax reform helps the poor and the ultra rich. Upper Middle class in states with high housing prices get screwed. If I can't deduct property tax and 500K-1M mortgage interest, the scale of rent versus own shifts.
Ultra Rich are helped by lowering corp tax rate.
Tax reform helps the poor and the ultra rich. Upper Middle class in states with high housing prices get screwed. If I can't deduct property tax and 500K-1M mortgage interest, the scale of rent versus own shifts.
Ultra Rich are helped by lowering corp tax rate.
Tax the working class? Give more tax relief to lower tax bracket. Something doesn't sound right.
We need something like George W Bush Tax CUTS.
https://taxfoundation.org/looking-back-bush-tax-cuts-fifteen-years-later/
We need something like George W Bush Tax CUTS.
https://taxfoundation.org/looking-back-bush-tax-cuts-fifteen-years-later/
Larkfield52
New member
No chance that this passes this year. Eliminate Personal Exemptions and State and Local Taxes. Horrible for Orange County and home prices..Wheeeeeeee
Ready2Downsize
Well-known member
Larkfield52 said:
I don't see this as hurting Irvine. Irvine has lots of Chinese buyers who pay cash. They'll keep coming.
The personal deductions are going up, negating SOME of the property tax/mortgage interest that would have been taken.
Higher income earners were already not able to deduct property taxes due to AMT and it hasn't hurt Irvine one bit.
MAYBE they'll FINALLY be some pushback on ridiculously high mello that go up every year and I guess that MIGHT hurt those stuck with current mello that goes up yearly.
Baker Ranch's no mello didn't kill off Irvine homes from going up.
In the 80's car loans and credit cards were deductible same as houses and listening to all the naysayers and Debbie Downers we were surely headed into oblivion because no one would ever buy cars or charge on their credit cards again and it had no effect.
This affects a limited number of people, those with mortgage interest between $500k-$1M plus $100K home equity who aren't hit by ATM who won't get back what they lost with a higher personal deduction and lower bracket. Those people most likely have a lot of disposable income and can take the hit....... if not they are over extended. Some Chinese person will be happy to take their house, probably for cash.
MOST of the country does not have homes priced like Irvine. I know it's hard to imagine, but the world doesn't revolve around the OC and Irvine.
Never make long term investments based on taxes. You can never ever trust the government to not change things at the worst time.
nosuchreality
Well-known member
I know that replacement of Obamacare is wonderful. He told us to believe him. 
curious george
Member
Canada does not have deductions, but their mrtg rates are much lower.
spootieho said:
No state AND no property tax deduction. If those add up to > $24k you are getting screwed. Also, the income ranges for the new brackets are not made clear but if you fall in the range for upper middle class you most likely will get screwed again. Not sure if AMT going away would take away some of that sting. Either make substantially more money or move to a place with low property taxes and no state taxes if you want to benefit from this new system. And after all that the new plan would balloon the deficit.
Sell your house, become a renter. Buy stocks in companies that have a lot of money off shore and or pay high tax rates. If this passes, company earnings are going to sky rocket. Companies will not re-invest. They will just buy back company stock or pay out in dividends.
I just don't see it happening. He really is putting a big middle finger to the states with high taxes and expensive housing.
I am actually pretty pissed off about this. Sat with my wife for a good hour and explained how we will be getting a big dildo stuck up our you know what if this goes through.
Maybe everyone might not agree because of all the cash buyers out there, I believe Irvine home prices will suffer also.
I just don't see it happening. He really is putting a big middle finger to the states with high taxes and expensive housing.
I am actually pretty pissed off about this. Sat with my wife for a good hour and explained how we will be getting a big dildo stuck up our you know what if this goes through.
Maybe everyone might not agree because of all the cash buyers out there, I believe Irvine home prices will suffer also.
I wouldn't worry too much about this tax plan - no way it passes in its current form.
This tax plan is a joke - nothing more than a huge break for the ultra rich making millions. It's almost as if this tax plan was made to minimize trumps taxes and screw the blue states. Hmmm.
This tax plan is a joke - nothing more than a huge break for the ultra rich making millions. It's almost as if this tax plan was made to minimize trumps taxes and screw the blue states. Hmmm.
IrvineBug22
New member
How do you figure thats the only way you get screwed?peppy said:
They are getting rid of the exemptions aswell so a family of 4 is about $16k and a family of 3 is $12k
So a family of 4 used to get a deduction of $16k lets say property tax and state tax was another $18k plus lets say $24k in mortgage interest. thats a write off of $58k
Trump tax
Take standard deductionof $24k
or itemize, that same family could do $24k in mortgage interest and thats it because they are getting rid of the personal exemptions so that is a tax write off loss of $34k and lets just say 25% thats a tax increase of $8500
IrvineBug22
New member
Obviously there is no way this passes as is but the thought of an $7k-$10k increase in taxes for the upper middle hard working class is crazy
nosuchreality
Well-known member
IrvineBug22 said:
ROFLMAO.
As to CA / local impact --- looked at another way, this still won't. hurt the OC GOP donor class (fox-watching older crowd living near the coast) many of whom derive their income from LLCs and can setup shenanigans to benefit. The donor class is the only thing the GOP cares about (all politicians and parties do but the GOP has taken it to its purest form) .
I know some of these people personally and they are all salivating over the LLC or " small business" tax cuts they hope are coming their way. This is why they are happy to overlook the cesspool of an administration this is.
But yes, perhaps there won't be many W-2 earning and relatively well-off MAGA fans left in south OC if this plan is executed as it currently stands.
I know some of these people personally and they are all salivating over the LLC or " small business" tax cuts they hope are coming their way. This is why they are happy to overlook the cesspool of an administration this is.
But yes, perhaps there won't be many W-2 earning and relatively well-off MAGA fans left in south OC if this plan is executed as it currently stands.
eyephone said:
"Gary Cohn, the chief White House economic adviser, said Thursday that he "can't guarantee" middle-income families won't pay more in taxes under the new Republican tax proposal."
https://www.aol.com/article/news/20...n-will-lower-taxes-for-middle-class/23226502/
IrvineBug22 said:
It would only affect certain states that are blue and most likely would not have supported the bill in the first place anyways. The majority would see a tax decrease financed by a larger deficit. If they do it through reconciliation, it might pass since the deficit hawks will probably be suddenly silent.
Ready2Downsize 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.