Posted on 03/03/2019 8:27:30 PM PST by GuavaCheesePuff
Nearly 11 million Americans nationwide would have been capped from deducting more than $323 billion in state and local taxes in 2017 because of changes enacted in the GOP's tax reform legislation, according to an audit released Tuesday by the Treasury Inspector General for Tax Administration — and expect similar results for the 2018 tax year.
The 28-page report offers a new window into the full scope of the $10,000 cap on SALT deductions, which is supported by the White House and top congressional Republicans but has been heavily criticized by the leaders of many high-tax Democratic states, including New York, and by elected officials on Long Island. The cap went into effect in the 2018 tax year.
The audit, which relies on federal tax returns, estimates that if the SALT limits had been in place in 2017, 10.8 million tax filers would have lost a combined $323 billion in deductions. Auditors estimate similar results in tax year 2018, where more than 10 million taxpayers will be unable to fully deduct their state and local taxes, the report said.
(Excerpt) Read more at newsday.com ...
I live in Idaho. The cap cut me short by $3700. My income tax alone exceeded to $10k so my property taxes meant nothing.
Actually, they are feeling the FULL pain of their state and local taxes. PRESIDENT Trump, through his SALT legislation, is “encouraging “ high earners to leave the high tax (DhimmicRAT) states, which will accelerate their fiscal decline. And, Libtards being Libtards, these states will just raise their taxes higher, thus compounding the problem: high earners leaving high tax states.
And they call him dumb. BWA-HAHAHA!!! Enjoy your state-wide poverty Libtards!
And thank you.
I don’t approve of subsidizing local taxes, but also appreciate the problems a change causes people.
That’s one-third of one percent of the population, and they aren’t the poor ones.
“(they purchased the home for $2.1 million). So they have a mortgage that’s probably a lot bigger than ours, and they have at least a $10k deficit in the deductibility of their property taxes. Someone tell me that that’s not a big problem for CA real estate?”
HOLY CRAP!!- Easy to figure PMI- with taxes
These guy are Easily paying OVER $12,000 a MONTH!
Kalifornia,NEWyak, and other places could go into a tailspin REAL quick-
SALT cap? What does the Strategic Arms Limitation Talks have anything to do with any pain and any tax?
Who calls State And Local TAXES - “SALT?” Is that something an accountant would say to pseudo-impress a client?
The bad thing from this is it will chill home sales which will trickle down to companies selling construction supplies.
It would have been prudent to index SALT to the yearly rate of inflation to build in some protection. Unintended consequences are going to abound from this situation like the aforementioned slowing of the housing market.
LOL I was thinking that too, for fun.
I guess this means less MIRV’ed ICBM’s for everyone.
Sounds like that was a close one. Glad you could recover.
Here in Washington state I itemize and my mortgage tax is more than $10,000. I have a home equity loan with significant interest which according to my bookkeeper I can write off since it is not home improvement. I am anticipating that showing that it is home improvement could be an item that would have to be proved.
There are other changes in the code, some that would save me some money but others that take away something.
I anticipate that the new code will cost me about $2,000 a year more. I live in a communist state with mostly mild weather, lots of water and beautiful mountains.
I will pay more but more folks are working and those in the heartland with less water and more extreme weather should not have to subsidize my life in a lovely but communist state.
From my cold, dead hands.
When I crossed over into the evil 1% I lost nearly all of my deductions I enjoyed when I was just an average, non-evil whatever percenter. Happy to see the wealth of others being spread around.
I meant to say my home equity loan is ALL home improvement.
NO.....
It iss about damned time people living in high-tax statesstartbpaying thier fair share of the costs of Liberaism, instead of those of us in the low tax/ sanity states subsidizing it.
New York and California are going to start feeling real political pain over this.
I don’t fully understand it since I live in NJ, one of the highest tax states in the USA but somehow I’m paying less in taxes even without being able to deduct SALT. I changed accountants this year because my old one retired. Maybe he should have retired years ago. I am going to go through the returns tomorrow but I think it has something to do with changes to the AMT phaseout being raised which but I suppose I’ll see.
That’s what I do with my Minuteman III’s. I like to keep 10. Just in case.
Especially if there’s stray cats all over the yard.
California & NY do not exist in a vacuum. Expect real pain for the national economy has the housing market starts to slide along with all other services connected to it.
I could care less about revenge when the entire economy will take the hit.
What if instead of slowing down the housing market is merely displaced to other locations?
(That’s what I get for reading Thomas Sowell!)
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