The IRS Is About To Limit Those SALT Caps: They're Looking at You, New York!

Hotair ^ | 06/13/2019 | Jazz Shaw

[headstamp 2]

Had a neighbor ask me if his wife could use my apartment as a “head of household” dodge for tax purposes. (NYS)

He said his accountant said it was OK to do.

I told him he needed to find another accountant.

[Sacajaweau]

The rich are always saying they want to pay more.

[DoughtyOne]

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Just $428.00 dollars to 98.00%

[2banana]

Funny how they don’t want their blue state rich folks to pay their fair share!

[wny]

it also varies within the state...I live in Ontario county, east of Rochester. my local taxes are about $4,700. relatives of mine in Nassau county on Long Island with a comparable house, maybe 300 sq ft larger but 1/4 the property, in a comparable neighborhood, pay $25,000.

[Behind the Blue Wall]

I see the logic of the cap on the SALT deduction in that it acts as a massive subsidy from low tax states to high tax ones, but from the taxpayer’s point of view, I’m getting taxed on money that I never saw.

[immadashell]

TurboTax never mentioned this.

[poinq]

In Illinois the SALT provisions have changed home prices dramatically. It hits the $600 thousand to $5 million dollar homes the most. Over $5 million seems to be “I don’t care” money. Where people have so much that price is not important. And under $600 thousand does not seem to have a large affect on taxes. A home around a million dollars is a much harder sell than it was before. And $3 million dollar homes are just not selling here unless they are highly discounted.

But this is not just because of SALT. The annual property taxes are about 2% now on million dollar homes. So that alone is problematic. Then the SALT is just salt on the wound.

[House Atreides]

I’m getting taxed on money that I never saw.
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That’s one of the reasons for the standard deduction. And it’s equal across the nation.

[Hemingway's Ghost]

We took it up the pipe this year in Massachusetts on account of this, too.

[lightman]

We knew this one was coming.

[aMorePerfectUnion]

This and more has led to a top in real estate, in the hottest markets.

[lightman]

The “standard deduction” was one of worse things that ever happened to charities.

The second worse was taxing their interest earnings on endowments as “unrelated income”,

The turd worse was jacking that tax rate by 30% in the new code.

[I want the USA back]

Calling a tax payment a donation is a lie. Longstanding IRS practice. The legislators in NY and NJ should be in federal prison for aiding tax evasion.

[RegulatorCountry]

It’s certainly accelerated the exodus from NY and NJ to NC and upstate SC.

[null and void]

They quickly got to work seeking to thwart the rules by allowing taxpayers to “donate” the extra amount to a “charity” set up specifically for the purpose of evading the law.

What's the difference between tax avoidance and tax evasion?

[Myrddin]

My Idaho state income tax exceeds the $10k cap by itself. My property taxes are completely on my nickel. The increased standard deduction made the net about even. When I finally retire, the property taxes will be in play again. I'll likely move from a top 5% payer to a bottom 49% non-payer of federal income taxes.

[null and void]

The “standard deduction” was one of worse things that ever happened to charities.

What business is it of the Almighty Federal Government that you donate to charities, let alone how much and to which charities?

[Sooth2222]

It seemed obvious to me and to any thinking person here in the PRNJ (that would exclude Bruce Springsteen and our governor) that this ploy was eventually going to end up in a double-****ing. The deduction was going to be disallowed by the IRS and result in a fine/penalties, and that the state "charity" wasn't going to refund the money.

(The problem is that the high tax states spend too much money. My solution to the problem was to stop looking for a bigger house here, and to look for one in Florida.)