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 ...
Pain is a fine teacher.
L
I’m starting to get teary eyed . . no . . wait . I’m okay. I’m going to be alright.
Florida kid with a vacation home - it’ll whack me for about $500-1000. Yea, whatever. It’s worth it!
This is going to be a negative for me personally since I, and American, live in the PRK. I don’t care. Do it.
How many of those 10.8 million tax payers will have a lower tax because of the lower rates and higher standard deduction?
A little history.
At one time all personal interest expense was an itemized deduction.
Then it was limited to just interest for your house. rational for this was too much inflation from personal borrowing. The result of this was everyone shifted debt to house loans which may have been what the bankers lobbied for to compete with credit cards. So now everyone is leveraged on their house debt.
One effect of this new rule is that people will focus on paying down their house debt as it is not as deductible. In general, that is a good thing.
SALT = State And Local TAXES. Not interest on debt
SALT = State And Local TAXES. Not interest on debt
Gee, that’s rough.
I think everyone should have to write a check for all the taxes they’re paying each year, so they can WATCH the money being taken away.
Right now it’s hidden. They never see that money, so they can’t miss it.
Right now it’s hidden. They never see that money, so they can’t miss it.
Everything worked fine until 1913. We fought wars, we had bank runs, we survived, and never had a debt even near to what we have now. Incrementalism has destroyed this country. Gutless bastards in both parties have set us on a path of unsustainable destruction.
Haven’t heard nuch fron Freepers affected by this.
Would like to hear more from them.
As we said, ping.
It’s affecting the “rich”. If you are paying more than $10K a year in property tax, you MUST be rich!
Oh...wait...this is Jersey!
I remember those Wunceuponatimes.
When the personal (including auto) loan interest deduction ended everyone and his brother applied for a home equity loan or home equity line of credit.
The Feds quickly ended that by limiting the HE deduction to things actually related to the real estate.
Moral: The little guy always gets screwed.
More blue staters will head south. Speed up the already changing dynamics. Red states will be finished off in time.
I lost $10,400 in SALT deductions. My son also turned 19 so I only got a flat $500 for him. Over all it hit me for between $1500 and $2500.
It seems the flat $24,000 standard deduction did not completely help me. It is hard to figure it exact.
Since my son is now in college, I was able to get a $2500 off my taxes this year. So I have made a change to my W-4 to withhold $300 more per month to make sure I do not owe next tax season. I live in Pennsylvania and I am sure people from New York and other high tax states are getting killed. It had to be done so I am not too mad, my former employer (a Wall St bank) kept the tax cut and gave next to nothing to the workers. They also laid off hundreds of workers and I was one of them.
Thanks for your personal account.
It was a good decision IMO, but it did hurt people.
“It is all related.”
How so? So far as I know, mortgage interest on your primary residence is still fully deductible up to $750k, but not your property taxes.
“https://www.yhbcpa.com/tax-consulting/can-i-still-deduct-my-mortgage-interest/";
That’s the kicker here in CA that’s going to wreak havoc with home sales. Example: We have been in our current home for 35 years. It was assessed for property taxation purposes at about $450k in 1983 (we did much of the construction ourselves and it cost us about $325k). Thanks to Prop 13 our annual property taxes are around $7,500. (homes are initially assessed at 1% of their value, and the assessments can only go up a maximum of 2% plus any voter-approved levies), so we still have $2,500. more we can deduct for Sales and other state taxes. But the young couple across the street from us who bought a home that has a value similar to ours, is paying in excess of $20,000., and most likely closer to $23,000. (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?
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