Posted on 01/03/2018 6:02:20 AM PST by Kaslin
Eliminating the deduction for mortgage interest and property taxes means the government will collect more in taxes.
This allowed the government to, in exchange, lower the tax rates for everyone. They also doubled the standard deduction which you can take whether or not you have so much in actual deductions. This applies to everyone.
But it benefits renters WITHOUT THE CORRESPONDING LOSS that owners will experience from the phased out interest and tax deductions.
I remember when that total sales tax used to be just 4 or 4.5 percent. The wheel tax of $5.00 was added in 1967 and it was supposed to be just temporary. Instead they doubled it every so many years (5 I think ) and last year one of the council members wanted to raise it to $75 which would have brought the total renewing fee to over $125.00
i have 8.875% sales tax. Our NY State tax is progressive. If we use the broad bracket of 43000-161,550 its $2093 + 6.45%. If we use 100k its 8.5%. comparable bracket for NYC taxes is $655 +3.76% over 45000.Toss in payroll and other taxes and we’re lucky they don’t ask us to work overtime to catch up on all they want to collect.
It's a sad day when we are forced to view "Not Losing as a Win!"
I guess that follows the logic, "If it didn't kill me it made me a better person!"
>>>it only levels the playing field by taking away a deduction for homeowners<<<
How so? I will continue to deduct my Home Interest and Property Taxes. This Bill only limits Deductions, it does not take them away.
The Loan amount for the Homeowner Mortgage Interest Deduction is capped at $750,000 down from One Million.
Where I live there are Million Dollar Homes, but Banks usually require 20% down, so those Buyers can deduct nearly all the Interest on their $800,000 Mortgages, exempting the Interest on the $50,000 over the limit.
If I were buying a Home today, I could not afford the Home I currently live in which would sell for about $800,000. Is that the Government’s fault or mine?
If I had made better Financial decisions when I was younger, maybe I could afford that much for a Home today. Boo hoo, poor me...
The Property Taxes in CA where I live are capped at 1% of Assessed Value. On a a Million Dollar Home, that cost would be $10,000 a year.
Now the question arises, what is “Middle Class”? Do most Middle Class Families live in Million Dollar Homes?
I have had two Relatives ask me of they will lose their Mortgage Interest Deduction because of the Tax Bill.
They live in Homes worth about $300,000 so it will nt affect them in the slightest. Obviously they depend on the Media to feed them Liberal Propaganda and it apparently works like a charm.
All that being said, I would have liked the Deduction Cap for SALT to be $20,000 instead of $10,000, but over 80% of Taxpayers will still see a decrease in their Federal Taxes.
Unfortunately it’s all part of the Legislative meat grinder.
Are you saying that under the new tax law, mortgage interest moves from being a Schedule A deduction to a deduction to gross income in determining adjusted gross income? I didn’t know that and assumed it was going remain in Schedule A.
I am not qualified to give tax advice and do not know the answer to your question. I only know that in the past, I was able to deduct my mortgage interest from my taxable income. Renters do not get this luxury. I also pay property taxes. Renters do not.
I do not know what deduction went to or from what schedule. Sorry.
Exactly - just like customers and/or employees pay corporate taxes through higher prices or reductions (or foregone increases) in salaries, respectively - which also applies to income taxes on the rich derived from pass through business activities or anytime there exists the ability to shift costs to customers or employees.
Exactly - just like customers and/or employees pay corporate taxes through higher prices or reductions (or foregone increases) in salaries, respectively - which also applies to income taxes on the rich derived from pass through business activities or anytime there exists the ability to shift costs to customers or employees.
If owners lose the tax deduction, I don’t see how this benefits renters. If landlords’ taxes go up (or deductions go down), they will pass that cost to the renters.
Am I missing something?
pretty sure thats how it will work.
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