Don’t know if I come out a loser or winner under the new tax system. Think it’s going to be close.
I live in a high tax state, California. With SALT and the mortgage deduction, my itemized deductions last year were $28k. Hear that the standard for married/joint is going to be $24k.
I think the bigger issue for me and my family might be a hit to the local real estate market, if folks who can afford a $1M mortgage can no longer deduct all that interest. That’s expected to drive down home prices. Then folks like my dear old mom (little income, but millions in RE value) are going to take an assets hit.
So in other words, the real estate value has up to now been artificially inflated by a government subsidy in the form of tax deductibility of mortgage interest on million dollar mortgages.
I guess I don't have much sympathy for those who have their real estate value reduced to non-subsidized levels. And not even all the way to non-subsidized levels at that. Only to the extent the mortgage exceeds $750,000.
I think your beef is with High Tax California and not the tax reform passed by Congress. Taxes are not going to come down in California, but most likely will be going up. Moving to a low tax state may be an option, an option I ended up choosing for myself and my family. Low taxes, low cost of housing and low cost of living is out there, hopefully this is an option that can work for you.
Look at the bright side, tax reform is going to spur tremendous growth over the next five years and hopefully offset the increased tax payments you may have to pay. You can always try maxing out on an IRA or 401k to offset your tax liability. Good luck