| Author |
Message |
Kookliebird
Member
08-04-2005
| Friday, February 09, 2018 - 12:29 pm 
I believe that the limitation of state and property deductibility at $10,000 is going to negatively impact home sales over the next couple of years. If you cannot deduct 100% of your property taxes, why would you buy a house. Renting would be so much cheaper on a 'cash out' basis. I see it happening after 2018, when potential homebuyers (especially if they have a state income tax) have to factor in the additional cash out without the tax benefit.
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Mack
Member
07-22-2002
| Friday, February 09, 2018 - 1:54 pm
There are some real estate types saying the limitation, especially in high tax states, could result in as much as a 10% loss in property value. Personally, as I said above not another post, I think that’ll have to be revisit as being too low.
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Dipo
Member
04-23-2002
| Friday, February 09, 2018 - 4:33 pm
So what was that standard deduction for a single person going to be? I think I may still exceed it if I continue with my charitable contributions, ACA health insurance, and state tax and real estate taxes.
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Dipo
Member
04-23-2002
| Friday, February 09, 2018 - 5:01 pm
Wow, I am shocked, my federal return was already accepted, I didn't expect that to happen until Monday.
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Mack
Member
07-22-2002
| Friday, February 09, 2018 - 5:10 pm
The new standard single deduction for 2018 is $12,000.
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Dipo
Member
04-23-2002
| Friday, February 09, 2018 - 5:24 pm
Oh, well I exceed that by a long shot itemizing and I don't think I will lose any of my deductions since my R/E taxes aren't that high yet, Thanks Mack.
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Kitt
Member
09-05-2000
| Friday, February 09, 2018 - 8:21 pm
They didn't seem to think about homes sales at all. The original tax bill increased the holding period for excluding gain on house sales from two of five years to five of eight years. Luckily that was struck down and remains at the two of five. It was causing a bit of panic here as a lot of people move homes within a five year period.
They also have stopped you being able to take mortgage interest deduction for mortgages over $1M. That's going to be bad for people in high property cost areas like here.
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Mack
Member
07-22-2002
| Saturday, February 10, 2018 - 10:07 am
No doubt there are parts of the country where $1M+ houses are more common and even approach the norm. When I think back about my houses and their purchase price I’ve not come close to $1M but then again if you’d told me what I would be paying for a house later in my life I would have said you were crazy. Of course I didn’t consider inflation, wage increases, etc., so kind of judged things in a steady state. I bought one of my favorite houses in Tacoma in 1976 for $43,000 which at the time was pretty much the average. That same house, with only remodeled kitchen and bathrooms but basically the same house, sold last year for $575,000.
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Kitt
Member
09-05-2000
| Saturday, February 10, 2018 - 12:47 pm
3 bedroom, 1450sqft Townhome for sale right now in my zipcode: $1,000,000. It's gorgeous inside but still... 1450sqft and $1 million dollars (which would be about $10,500 property tax a year, for those counting)
https://www.zillow.com/homedetails/6632-Kettle-Ct-San-Jose-CA-95120/19766070_zpid/?fullpage=true
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Dipo
Member
04-23-2002
| Saturday, February 10, 2018 - 1:13 pm
Yeah, that is nuts Kitt, I used to live down there and can't even imagine how it is now. I mean it is expensive up here in WC, but you can still find affordable, well sort of affordable if you are willing to do Condos or PUDs.
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Sadiesmom
Member
03-13-2002
| Saturday, February 10, 2018 - 9:46 pm
I thought the 10K limit was a combination of property and state income taxes. So I not only lose the partial deduction of the real estate but also the income tax that I pay on my withdrawl from my 401K. I don't even want to think what people will lose based on salary.
and all the deductions all disappear, charity, state taxes and medical deductions in 5 years unless congress renews them, what are the odds?
New Jersey is looking into how the state can declare itself a charity and all payments to the state will be a charitable deduction. I don't see how they can pull it off since it is not voluntary, but good luck to them.
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Kitt
Member
09-05-2000
| Saturday, February 10, 2018 - 11:01 pm
Yes, that's right Sadies, $10K limit on state and property taxes combined.
That's the same thing California was thinking about, but I think the feds came back almost immediately with a response that said you can't hide taxes as donations and it wasn't going to work.
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Mack
Member
07-22-2002
| Sunday, February 11, 2018 - 8:40 am
With only seven states without income tax I’d guess a number of the others are going to look at how they might soften the impact of the new tax law. Of course not all of the states with income tax also have high property taxes so a number of those states residents will be okay. Got to remember states with no income taxes have to raise money somehow and here in Texas a lot of that burden is borne by pretty high property taxes.
It will be interesting locally as we actually live in Bexar County just three blocks outside of the San Antonio city limits. The city has been maneuvering for ten plus years to annex us and apply their significantly higher property tax. Thanks to legal challenges and filing errors we’ve kept the city away. I’d imagine with the new Federal tax law some of my neighbors would fight even harder as the last estimate I saw would raise our property taxes about 33% which would put us over the $10,000 Federal limit.
The city hasn’t been very convincing selling the notion we’d be better off under them as all we’d basically get is city fire and police. We already have city utilities and pay a minimum surcharge for that which would go away but it adds up to less than $100 a year so not a big deal. Subsequent to their previous and failed attempts to annex us the state passed a law this past summer that cities can no longer annex adjacent areas without a vote of the impacted residents. I think that’s pretty well killed annexation.
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Karuuna
Board Administrator
08-30-2000
| Sunday, February 11, 2018 - 11:24 am
FWIW, Colorado income tax is also very low. A flat 4.63%.
The tax that kills me is FICA, since I am self employed. It's about 15%.
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Roxip
Member
01-29-2004
| Monday, February 12, 2018 - 7:54 am
Mack, Mesquite tried to do the same with a property near where I lived...and the homeowners also fought it off. I don't think that the people who live there would even be in the Mesquite school district!
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Mack
Member
07-22-2002
| Tuesday, February 13, 2018 - 8:23 am
In our case if annexed by the city all of the property tax increase would have gone to the city’s operations as the majority of school districts here in Texas are independent and not tied to either a city or county. Our school district actually crosses city/county boundaries with schools in both and the millage rate is the same in either jurisdiction so the district wouldn’t have benefited one dime.
I did notice on this morning’s news that the city is now expressing some concern about the new Federal tax law. Like many cities the city and developers have spent a lot of money to revitalize downtown and draw more people to move back into the city’s central area. The condos they bent over backwards to get built were already selling slow because of their high cost and limited the property tax deduction isn’t going to help matters.
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Roxip
Member
01-29-2004
| Tuesday, February 13, 2018 - 8:25 am
LOL. You are right (I'm in Texas too). I forgot that they are two separate taxing entities.
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Dogdoc
Member
09-29-2001
| Wednesday, February 21, 2018 - 7:01 am
Madison Avenue executives are paid a fortune to come up with successful ad campaigns.
I was listening to the Arby ad and that guy with the deep voice says "Just two for five dollars".
That is bad syntax. He should say "Two for just 5 dollar".
Ads cost more and say less.
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Dogdoc
Member
09-29-2001
| Thursday, February 22, 2018 - 1:28 pm
Has it been discussed anywhere about the fact that the Florida school shooter set off the fire alarm to get the students into the hallways.
Will fire drills now be cancelled. I think a lot of districts are required to have them. And when they have them they are supposed to be a 'surprise'.
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Mack
Member
07-22-2002
| Thursday, February 22, 2018 - 2:07 pm
Therein lies the rub. Can you imagine the outcry if there was a school fire or some other emergency which resulted in loss of life because the district decided not to have drills? “We decided not to have fire or emergency drills because we can’t protect your children from a shooter who might use the alarm system.” Yep, that would be a really interesting school board meeting.
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Seamonkey
Moderator
09-07-2000
| Thursday, February 22, 2018 - 3:58 pm
Maybe the alarm could be a surprise, but they could immediately play a voice saying THIS IS OFFICIAL.
But on the other hand, if there was an actual 🔥 fire and someone pulled the alarm, they wouldn't want everyone to sit tight.
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Dipo
Member
04-23-2002
| Thursday, February 22, 2018 - 5:10 pm
I like how Japan and Australia solved this problem. Well actually just about every other nation in the world.
Our legislators just need to get real about the issue, ban the assault rifles, which are for war not hunting.
And get the NRA out of the government.
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Karuuna
Board Administrator
08-30-2000
| Thursday, February 22, 2018 - 7:27 pm
Yeah, I'm not sure how to get around the idea of having alarms throughout the school so someone could pull them for an emergency, yet still have people wait to respond until the emergency is verified.
Some of the teachers here did choose to check it out, and had their students wait to respond. Some responded immediately, believing it to be an actual emergency (not a drill).
I don't think it affects practice drills. The question is if someone remotely pulls the alarm, is it real?
But we've always had that issue. When we were kids, there were a few bad actors in our school that would pull them to get out of a test or to play a prank. This is totally different. Pulling it to make more victims.
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Pamy
Member
01-01-2002
| Thursday, February 22, 2018 - 7:32 pm
the should have the alarm in more secure place that just anyone cant activate it
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Karuuna
Board Administrator
08-30-2000
| Thursday, February 22, 2018 - 8:14 pm
Well, that's great in theory. But most building codes require that automatic alarms be located in vulnerable areas (think about your smoke alarm in the kitchen). Our kids used to set off the alarms by blowing cig smoke in them. yeah, I went to a rough school.
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