Althea
Althea told me...
You don't know that because you didn't read your own article. The SALT deduction involves anyone who pays more than $10k/year in property/school/local taxes. That's not only the wealthy.
Democrats TAX CUTS FOR THE RICH!
- Thread starter Superfreak
- Start date
Althea
Althea told me...
Of course we do silly...it's been a normal deduction for ages.
“Exclusively”? Where do you find that claim?
countryboy
Verified User
You finally getting a new work truck?
Althea
Althea told me...
LONG journey. As you recall, I dead ended in Feb.. I finally found that they'd build me a truck at the end of March. In the interim, I had an epiphany. I decided to keep my pickup with barely 100k miles, and buy a Promaster van. I can't stand crawling into the back of my truck every time I have to get tools from the front. I really don't want three vehicles on the road, but it's the best way to approach this.
I got a great deal on the van, and the only bummer is that I have to wait until Sept. to take delivery. Given that they're Fiats, they're built overseas, and finished here.
canceled.2021.1
#AMERICAISDEAD
Why are you so excited about the deduction?
By taking that deduction, aren’t you depriving some needy person of healthcare? Food? A home?
Why are you so greedy and selfish?
Have you no shame?
canceled.2021.1
#AMERICAISDEAD
Why should the rest of the country subsidize your states high taxes? How does that make sense?
Obviously you want those high state taxes right?
Or is it a bait and switch?
Superfreak
Verified User
and when the government changes the tax code, which happens frequently, the rules change. You most certainly do NOT have a right to it.
That is how red states have to subsidize high tax blue states that get to deduct state taxes off their federal income taxes.
Althea
Althea told me...
Hey...whether trump is paying accountants to skirt tax law, or Blue state governors come up with accounting tricks to avoid the punitive tax code...it's all the same.
Althea
Althea told me...
Nice try. Most Red states get more back than they contribute, and most Blue states get less back than they contribute.
Superfreak
Verified User
The states have the ability and right to alter their tax code. But you do not have a 'right' to any deduction.
Superfreak
Verified User
That is an old mantra that is disproven once you remove federal dollars going to states for the military bases in those states. When you also add in the deductions we are discussing it further shows how false that narrative is.
cawacko
Well-known member
New Tax Laws Have Home Buyers Checking New Places
The new cap on deductions for taxes, including on property, have people looking for deals outside high-tax states; Florida and Nevada more popular after GOP overhaul
New tax rules that cap deductions of state and local taxes are having a disproportionate effect on taxpayers who live in states with high income taxes and property taxes.
While it’s too early to quantify the impact of the Tax Cuts and Jobs Act, which became effective on Jan. 1, some real-estate professionals say they are beginning to see early signs of an exodus to low-tax states.
“I’ve seen a huge increase in the number of clients who want to purchase in Palm Beach to establish residency in Florida,” says Chris Leavitt, director of luxury sales at Douglas Elliman Real Estate in Palm Beach. “And there has been a pickup since Jan. 1.”
Recently, Mr. Leavitt was dining at a restaurant in Palm Beach when he ran into four couples from New York City who were all in Palm Beach to look for real estate to establish residency in Florida. “They were finance people in their mid- to late-30s looking in the $700,000 to $1.5 million range for condos on the island,” he says. “That night I saw before my eyes how this tax law is impacting the real-estate industry here.”
Before the new rules, taxpayers who itemized could write off an unlimited amount of state and local taxes, unless disallowed under the alternative minimum tax. But now, the deductions are capped at $10,000.
The change most affects taxpayers in states with high income and property taxes. According to the Tax Foundation, a pro-growth tax-policy nonprofit, the six states with the highest state and local tax deductions as a percentage of income are New York, New Jersey, Connecticut, California, Maryland and Oregon.
There are also provisions in the new tax law that benefit high-net-worth individuals, such as a reduction in the top individual tax rate and an increase in the estate and gift tax exemption.
Real-estate developer David Hutchinson, president of Ketchum, Idaho-based VP Cos., is touting the tax advantages of living in Nevada on his company website that highlights Clear Creek Tahoe, a golf community that will ultimately include 391 custom homes—a project in which he is a minority interest holder. The border between California and Nevada bisects Lake Tahoe. Californians to the west can pay a state income-tax rate of up to 13.3%, while Nevada residents just 30 minutes to the east pay no state income taxes.
“Most of our lot sales are to buyers from California, the vast majority of whom intend to make them a permanent residence,” Mr. Hutchinson says. “If you’re a wealthy tech executive from the Bay Area who can live wherever you want and you have a $3 million income, you would have $399,000 a year in savings here. That’s a lot of money to spend on real estate.”
If you’re thinking of relocating to reduce your taxes, here are some things to consider. Consult a tax specialist for specifics.
• It isn’t just about the taxes. Consider your lifestyle as well. “Make sure you want to live there, and that it’s not just to save the taxes,” Mr. Hutchinson says. “It is great to save money, but if you’re not a Texas person and you move there just to save on income taxes, that’s a mistake.”
• Look at all the costs. When deciding whether to move—and where—look at the other costs of ownership. For example, a state with low income taxes may make up for it with a high sales tax. Or, in states like Florida, you may end up paying substantially higher costs for homeowners insurance. You may ultimately save on income taxes by establishing residency elsewhere, but if the state you’re moving to has higher costs of ownership, it might turn out to be a wash.
• Keep up on the news. Some states, like New York and New Jersey, are trying to fight back against the federal limitations on the state and local tax deductions through workarounds that would allow residents to continue to benefit from the deductions. There is no way of knowing, however, if these tactics will ultimately survive a challenge by the IRS.
https://www.wsj.com/amp/articles/new-tax-laws-have-home-buyers-checking-new-places-1528295467
The new cap on deductions for taxes, including on property, have people looking for deals outside high-tax states; Florida and Nevada more popular after GOP overhaul
New tax rules that cap deductions of state and local taxes are having a disproportionate effect on taxpayers who live in states with high income taxes and property taxes.
While it’s too early to quantify the impact of the Tax Cuts and Jobs Act, which became effective on Jan. 1, some real-estate professionals say they are beginning to see early signs of an exodus to low-tax states.
“I’ve seen a huge increase in the number of clients who want to purchase in Palm Beach to establish residency in Florida,” says Chris Leavitt, director of luxury sales at Douglas Elliman Real Estate in Palm Beach. “And there has been a pickup since Jan. 1.”
Recently, Mr. Leavitt was dining at a restaurant in Palm Beach when he ran into four couples from New York City who were all in Palm Beach to look for real estate to establish residency in Florida. “They were finance people in their mid- to late-30s looking in the $700,000 to $1.5 million range for condos on the island,” he says. “That night I saw before my eyes how this tax law is impacting the real-estate industry here.”
Before the new rules, taxpayers who itemized could write off an unlimited amount of state and local taxes, unless disallowed under the alternative minimum tax. But now, the deductions are capped at $10,000.
The change most affects taxpayers in states with high income and property taxes. According to the Tax Foundation, a pro-growth tax-policy nonprofit, the six states with the highest state and local tax deductions as a percentage of income are New York, New Jersey, Connecticut, California, Maryland and Oregon.
There are also provisions in the new tax law that benefit high-net-worth individuals, such as a reduction in the top individual tax rate and an increase in the estate and gift tax exemption.
Real-estate developer David Hutchinson, president of Ketchum, Idaho-based VP Cos., is touting the tax advantages of living in Nevada on his company website that highlights Clear Creek Tahoe, a golf community that will ultimately include 391 custom homes—a project in which he is a minority interest holder. The border between California and Nevada bisects Lake Tahoe. Californians to the west can pay a state income-tax rate of up to 13.3%, while Nevada residents just 30 minutes to the east pay no state income taxes.
“Most of our lot sales are to buyers from California, the vast majority of whom intend to make them a permanent residence,” Mr. Hutchinson says. “If you’re a wealthy tech executive from the Bay Area who can live wherever you want and you have a $3 million income, you would have $399,000 a year in savings here. That’s a lot of money to spend on real estate.”
If you’re thinking of relocating to reduce your taxes, here are some things to consider. Consult a tax specialist for specifics.
• It isn’t just about the taxes. Consider your lifestyle as well. “Make sure you want to live there, and that it’s not just to save the taxes,” Mr. Hutchinson says. “It is great to save money, but if you’re not a Texas person and you move there just to save on income taxes, that’s a mistake.”
• Look at all the costs. When deciding whether to move—and where—look at the other costs of ownership. For example, a state with low income taxes may make up for it with a high sales tax. Or, in states like Florida, you may end up paying substantially higher costs for homeowners insurance. You may ultimately save on income taxes by establishing residency elsewhere, but if the state you’re moving to has higher costs of ownership, it might turn out to be a wash.
• Keep up on the news. Some states, like New York and New Jersey, are trying to fight back against the federal limitations on the state and local tax deductions through workarounds that would allow residents to continue to benefit from the deductions. There is no way of knowing, however, if these tactics will ultimately survive a challenge by the IRS.
https://www.wsj.com/amp/articles/new-tax-laws-have-home-buyers-checking-new-places-1528295467
It is not an issue of how much they "get back" since a lot of that involves stuff like Social Security and Medicare benefits which would go to the person whether he lived in a blue or red state. The fact that many choose to retire to red states is not giving that state money but the recipients of the benefits.
The issue is that the more deductions blue states get reduces their federal income tax revenues which must be subsidized by red states.
Also, those red states are fairly small compared to blue states and the number of people getting those deductions or benefits outweighs the number of people in the red states getting that money.