2017:The standard deduction for single taxpayers and married couples filing separately is $6,350 in 2017.

2018: The standard deduction amounts will increase to $12,000 for individuals, $18,000 for heads of household, and $24,000 for married couples filing jointly and surviving spouses.

So right now I have a mortgage where the interest payments are $7400 a year. My taxes on it are $2400 a year. That totals $9800 a year. I have less (on average) less than $2200 in other deductions a year. (My state income tax is a different situation - we can pretend it's 0 right now.)

So I itemize.

But if I'm reading this correctly my tax advantage for my modest condo will be wiped out next year - am I reading this correctly?

I could , in theory, pay off the mortgage and not see any disadvantage tax wise (assuming no other changes.)

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Gone: My Discogs collection for The Roots:
http://www.discogs.com/user/tomhayes-roots/collection

We itemize...and a $24K standard deduction is a fraction of our itemized deductions when you factor in real estate.
But they pushing this shit like it's a win win for everyone.
It's not...not by any stretch of the imagination.

>2017:The standard deduction for single taxpayers and married
>couples filing separately is $6,350 in 2017.
>
>2018: The standard deduction amounts will increase to $12,000
>for individuals, $18,000 for heads of household, and $24,000
>for married couples filing jointly and surviving spouses.
>
>So right now I have a mortgage where the interest payments are
>$7400 a year. My taxes on it are $2400 a year. That totals
>$9800 a year. I have less (on average) less than $2200 in
>other deductions a year. (My state income tax is a different
>situation - we can pretend it's 0 right now.)
>
>So I itemize.
>
>But if I'm reading this correctly my tax advantage for my
>modest condo will be wiped out next year - am I reading this
>correctly?
>
>I could , in theory, pay off the mortgage and not see any
>disadvantage tax wise (assuming no other changes.)
>


"Get ready....for your blessing....."

We were going to try to pre-pay our RE taxes for this year but the county wasn't clear on whether they'd credit it properly.

<-><-><-><-><-><-><-><-><->
<-><-><-><-><-><-><-><-><->

"Get ready....for your blessing....."

I'm no longer going to itemize. But that's cool with me. The new standard deduction is much higher than all my itemized stuff.

_______________________________________

>I'm no longer going to itemize. But that's cool with me. The
>new standard deduction is much higher than all my itemized
>stuff.
Well, it takes away the advantage of owning a lower price house - the fuckers will million dollar houses (and mortgages) are still getting the benefits. Except strangely not the property taxes.

These changes hurt the people in the middle more than the low end or the high end.

------------


Gone: My Discogs collection for The Roots:
http://www.discogs.com/user/tomhayes-roots/collection

I can't complain that my tax bill has decreased. But the game definitely got more unfair.

If we're being really real, the mortgage deduction is/was unfair all together.

It was a tax break only for those that can itemize. Who can itemize? For the most part, only those who are pretty well off

_______________________________________

>If we're being really real, the mortgage deduction is/was
>unfair all together.

Well this is becuase part of the old "American Dream' was to own a house and this evened out the interest penalty of trying to buy a house. Wasn't long ago that a "good rate" was 6.5% - and that was a penalty on people trying to buy a house.

And remember there's property tax increases each time a property is sold at a higher price so it benefits the (local) government sometimes too.

So "unfair" in one sense - but understandable in another.

The really poor get fucked in any case.


>It was a tax break only for those that can itemize. Who can
>itemize? For the most part, only those who are pretty well
>off

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Gone: My Discogs collection for The Roots:
http://www.discogs.com/user/tomhayes-roots/collection

It doesn't account for so many factors...
Our household income is over $200K yes....
So according to the tax code we're "wealthy"?
That doesn't take into account the following:
-We live in one of THE most expensive regions of the country because this is where the job opportunities were in our field of study. To own a home in this region is dumb expensive. So a HUGE chunk of our income goes to just owning a home...
-We have two kids. HUGE expense in daycare alone. And because of our income, the dependent deduction is negated.
-Student loan debt
-Cost of living in this EXPENSIVE region.

So our $200k here is the equiv. of maybe $80K somewhere like say N.C. It's good yes....but it's hardly wealthy.

The middle class stay getting screwed over basically.

Income is an absolute.

Cost of living + psychological comfortableness don't have anything to do with the tax code

200k+ is a lot of income based on what people actually earn in the U.S.

Now, if you have expenses that overwhelm that then you have to change your spending habits.

Note:I live in San Diego - the only way to change spending habits is to move.

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Gone: My Discogs collection for The Roots:
http://www.discogs.com/user/tomhayes-roots/collection

Moving to a cheaper region of the country = losing current job & current pay
Moving to a "cheaper" location within the region = higher commuting and incidental expenses = no change in expenses...just a shift & likely a lower quality of life.

>Income is an absolute.
>
>Cost of living + psychological comfortableness don't have
>anything to do with the tax code

i will be paying more money in taxes next year as a direct result of the change. That will directly affect my cost of living and our psychological "comfort" for sure.

>200k+ is a lot of income based on what people actually earn in
>the U.S.
>
>Now, if you have expenses that overwhelm that then you have to
>change your spending habits.
>
>Note:I live in San Diego - the only way to change spending
>habits is to move.


"Get ready....for your blessing....."

need to find a place to settle before these kids start school.

prolly need to keep our asses right in Charlotte.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

2017 tax code.

Blue collar worker. $50,000 income. Buys $125,000 house. 5% interest rate
White collar worker. $180,000 income. Buys $400,000 house. 5% interest rate.

Everything else about these two people is identical. Same number of kids, same location, everything is the same.

They are both paying interest on their homes. But who is able to use that interest expense to reduce their tax bills? The one who able to buy the more expensive home (white collar worker).

Blue collar worker has mortgage interest expenses ($6250), but it isn't high enough to overtake the standard deduction, so it is not in her favor to itemize. So even though she is a home owner, there is no tax benefit for her.

White collar worker has much higher interest expense ($20,000). This is much larger than the standard deduction, so she is able to benefit from the mortgage interest deduction.

How is it even the least bit fair that these two people are doing the exact same thing (owning a home). But the benefit that comes from that flows only to those wealthy enough to buy expensive homes?

Literally the more wealth you have, the more the government will subsidize you.

_______________________________________

Source of income is the real determinant.

Someone who makes 100k from dividends and interest is likely wealthier than someone who makes 250k on a W2 but the person living off of their assets will get taxed less.

I wouldn't say the tax code punishes the middle class but it does favor investors over wage earners.

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<-><-><-><-><-><-><-><-><->

to be jacked up in 2019...
all that technical mumbo jumbo aside...
lol...

"Get ready....for your blessing....."

so, you don't get 3.5-4 racks (whatever the amount was) for you, your wife, your kids, etc.

edit: Trump sittin back like "got 'eem!"