Will you win or lose under new tax plan?

[sleek98]

https://www.bloomberg.com/news/arti...r-top-end-21-corporate-rate-tax-debate-update

Under the new plan they now allow 10,000 combined State/local income (or sales tax) and property tax.

Although I still dont see many people itemizing unless they have a 350k plus mortgage and 100k+ income. The numbers just dont work out for itemizing otherwise.

 

[OETKB]

Man, all this hair splitting over a new plan. My tax return is already 3/8's of an inch thick.

 

[Outlaw99]

Self employed, 2 businesses. I will lose a lot of write offs.

Sent from LG G5

 

[MG0h3]

Anybody else here have any info on how this effects those that have rental homes but not as a business?

I have a net loss of about 25k per year between three rentals. I still take the standard deduction on the 1040; itemizing prop taxes and interest isn't enough for me.

I keep hearing about these caps on mtg int and prop taxes but I don't put those in the 1040.


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[sleek98]

Man, all this hair splitting over a new plan. My tax return is already 3/8's of an inch thick.

View attachment 1450972

Just 3/8"? I have a couple federal returns that go in a 3" 3 ring binders

Self employed, 2 businesses. I will lose a lot of write offs.

Sent from LG G5

What write off are you losing?

Your gaining a 20% deduction of your net income from flow through entities, sch C/E/F income should qualify for that.

Anybody else here have any info on how this effects those that have rental homes but not as a business?

I have a net loss of about 25k per year between three rentals. I still take the standard deduction on the 1040; itemizing prop taxes and interest isn't enough for me.

I keep hearing about these caps on mtg int and prop taxes but I don't put those in the 1040.

Cap of 750k on NEW mortgages taken out and is for your personal residence not rental houses, IE if you have a 1,000,0000 mortgage right now the cap doesn't apply to you.

As far as I have heard nothing major has changed on the rental side. By definition when you rent a home to a third party that your not related to in exchange for cash or other services it is a business. Main exception would be if you stay so many nights in the home and it becomes a vacation rental which has a whole other set of rules. You should still get to take the 25k loss each year if your not phased out.

 

[black99lightnin]

https://www.bloomberg.com/news/arti...r-top-end-21-corporate-rate-tax-debate-update

Under the new plan they now allow 10,000 combined State/local income (or sales tax) and property tax.

Although I still dont see many people itemizing unless they have a 350k plus mortgage and 100k+ income. The numbers just dont work out for itemizing otherwise.

Well this is SVTP....

 

[sleek98]

Well this is SVTP....

But everyone here has a paid for house.....

 

[black99lightnin]

But everyone here has a paid for house.....

True

 

[OETKB]

Just 3/8"? I have a couple federal returns that go in a 3" 3 ring binders

Okay, you win,.. er, I mean, lose, I mean, what a hell of a tax return/s.
I'm just a small time real estate tycoon wannabe.

 

[RedRocketMike]

I won already by not having to pay that ACA insurance compliance penalty.

 

[sleek98]

Okay, you win,.. er, I mean, lose, I mean, what a hell of a tax return/s.
I'm just a small time real estate tycoon wannabe.

Its a win and a loss. Win since it takes me about 40 hours to do that return, and its billed by the hour. Loss since I hate doing that long of a return.

 

[mc01svt]

this is not tax reform, its more of the same. Citizens get robbed blind of their income and there is nothing you can do about it but pay an accountant to move things to different categories in a futile attempt to reduce the amount you are robbed.

By the looks of it i fall in the sweet spot and will save a few hundred bucks, thats peanuts compared to what i have paid in over the year. Thats akin to someone robbing my house of $40k worth of property then at the end of the year sending me a brand new TV as a "gift."

This is all a scam no matter how much you slice it.

involuntary taxes on income are theft

/thread

 

[Never_Enough]

But everyone here has a paid for house.....

& a garage that rivals treynor's

 

[MG0h3]

As far as I have heard nothing major has changed on the rental side. By definition when you rent a home to a third party that your not related to in exchange for cash or other services it is a business. Main exception would be if you stay so many nights in the home and it becomes a vacation rental which has a whole other set of rules. You should still get to take the 25k loss each year if your not phased out.

The rental stuff is weird; since I don't do it a certain % of my work time I'm not a real estate professional and therefore it isn't a business. Want to say they refer to it is as passive income. Being doing it so long I don't even pay attention when I do my taxes in turbo tax.

Oh well....wait and see. If I were to lose those tax breaks it wouldn't be worth it for me so I'd either jack the rent about 20% on each unit and if I couldn't rent them I'd sell.

 

[Coming Up]

The calculator doesn't work for me. It's showing the wrong figures as of now.

 

[2veloce2003]

this is not tax reform, its more of the same. Citizens get robbed blind of their income and there is nothing you can do about it but pay an accountant to move things to different categories in a futile attempt to reduce the amount you are robbed.

By the looks of it i fall in the sweet spot and will save a few hundred bucks, thats peanuts compared to what i have paid in over the year. Thats akin to someone robbing my house of $40k worth of property then at the end of the year sending me a brand new TV as a "gift."

This is all a scam no matter how much you slice it.

involuntary taxes on income are theft

/thread

Correct this a typical sham game. They are working within a budget of $1.5 trillion which is the tax needed. Everything that I have reviewed to date (all tentative) is nothing about reducing but just moving the pea under the cup. Businesses may overall see a tax rate reduction in 2019 at the expense of losing other write offs. Complexity continues labeled as a tax reduction.


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[Voltwings]

this is not tax reform, its more of the same. Citizens get robbed blind of their income and there is nothing you can do about it but pay an accountant to move things to different categories in a futile attempt to reduce the amount you are robbed.

By the looks of it i fall in the sweet spot and will save a few hundred bucks, thats peanuts compared to what i have paid in over the year. Thats akin to someone robbing my house of $40k worth of property then at the end of the year sending me a brand new TV as a "gift."

This is all a scam no matter how much you slice it.

involuntary taxes on income are theft

/thread

So i'm not being shitty when i say this, but how do you expect to pay for "state" jobs then?

My wife is a teacher, who pays her salary? Cops, military, infrastructure, etc... i agree, i'd rather take more of my check home, but living somewhere like Texas where the tax dollars are handled well (or seem to be at least), and our roads are in good shape, and our schools do ok, it's nice to see. We just moved to Oklahoma for my job and oh my God, the schools are terrible, the roads are terrible, it's dark as shit here because there's gotta only be like 10 street lights (like for visibility, not traffic lights) in the whole damn state ... i'm a believer in the good taxes can do, but sure we all think (and will always think) it could be done better.

 

[OETKB]

So i'm not being shitty when i say this, but how do you expect to pay for "state" jobs then?

My wife is a teacher, who pays her salary? Cops, military, infrastructure, etc... i agree, i'd rather take more of my check home, but living somewhere like Texas where the tax dollars are handled well (or seem to be at least), and our roads are in good shape, and our schools do ok, it's nice to see. We just moved to Oklahoma for my job and oh my God, the schools are terrible, the roads are terrible, it's dark as shit here because there's gotta only be like 10 street lights (like for visibility, not traffic lights) in the whole damn state ... i'm a believer in the good taxes can do, but sure we all think (and will always think) it could be done better.

Don't take this as a shitty answer, but some of us would be happy to see the government out of most of these things. They've demonstrated a startlingly outrageous lack of efficiency in doing any of them.

Freedom is a scary thing.

 

[Coming Up]

Don't take this as a shitty answer, but some of us would be happy to see the government out of most of these things. They've demonstrated a startlingly outrageous lack of efficiency in doing any of them.

Freedom is a scary thing.

Post your number so we can call you when we're getting burglarized or when our kids need to learn calculus

 

[OETKB]

Post your number so we can call you when we're getting burglarized or when our kids need to learn calculus

a) I'm armed so I can defend my family.
b) I sent my kids to private school because I wasn't happy with what the government offered.
Liberty is a scary thing. Our founders would not be proud of what we have become.