Califoia Sales Tax Deduction
#46
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Last Saturday night my wife was running late for a dinner party. Since I had some free time I decided to look at the tax reform legislation and read the following article:
https://www.journalofaccountancy.com...201718070.html
The article lacked specifics on the treatment of income for passthrough entities. I started reading the actual legislation but, unless you had the current tax code in hand, was not self explanatory. I called several friends/business associates who are tax professionals for clarification. Below is the email I received today:
Passthrough provisions
The TCJA introduces new rules aimed at providing greater parity between the tax treatment of owners of passthrough entities and corporations but also includes guardrails intended to prevent passthrough owners from recharacterizing wage income as more lightly taxed business income.
20 percent deduction of domestic qualified business income: Under the TCJA conference agreement, an individual, estate, or trust taxpayer generally may deduct the sum of:
Qualified business income does not include any amount paid by an S corporation that is treated as reasonable compensation of the taxpayer. Similarly, qualified business income does not (to the extent provided in regulations) include any amount allocated or distributed by a partnership to a partner who is acting other than in his or her capacity as a partner for services rendered with respect to the trade or business, and does not include any amount that is a guaranteed payment for services actually rendered to or on behalf of a partnership to the extent that the payment is in the nature of remuneration for those services. In addition, qualified business income does not include certain investment-related income, gain, deductions, or loss.
For taxpayers with income lower than a threshold amount ($157,500 for single filers, $315,000 for joint filers, with any potential deduction phased out over the next $50,000 or $100,000 of taxable income, respectively), there is no wage limitation on the 20 percent deduction for qualified business income. (Note that the threshold amount is determined by reference to the taxpayer’s taxable income, which may include income from other sources.) These taxpayers also are not subject to the limitation on specified service businesses described below.
For taxpayers with income above a threshold amount, a limitation on the 20 percent deduction applies. With respect to each qualified trade or business, the amount of the deduction is limited to the greater of (1) 50 percent of the W-2 wages with respect to the qualified trade or business or (2) 25 percent of the W-2 wages with respect to the qualified trade or business plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property.
Qualified property means: (1) tangible property of a character subject to depreciation that is held by, and available for use in, the qualified trade or business at the close of the taxable year, (2) which is used in the production of qualified business income, and (3) for which the depreciable period has not ended before the close of the taxable year. The depreciable period with respect to qualified property of a taxpayer means the period beginning on the date the property is first placed in service by the taxpayer and ending on the later of (1) the date 10 years after that date, or (2) the last day of the last full year in the applicable recovery period that would apply to the property under section 168 (without regard to section 168(g)).
As mentioned above, a specified service business is not a qualified trade or business. A “specified service business” means any trade or business involving the performance of services in the fields of health, law, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners, or which involves the performance of services that consist of investing and investment management trading, or dealing in securities, partnership interests, or commodities. For this purpose a security and a commodity have the meanings provided in the rules for the mark-to-market accounting method for dealers in securities (sections 475(c)(2) and 475(e)(2), respectively. A specified service business, however, does not include a trade or business involving engineering or architecture.
In the case of a partnership or S corporation, the provision applies at the partner or shareholder level, as the case may be. Each partner takes into account the partner’s allocable share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the partner’s allocable share of W-2 wages of the partnership. The partner’s allocable share of W-2 wages is required to be determined in the same manner as the partner’s share of wage expenses. Similarly, each shareholder of an S corporation takes into account the shareholder’s pro rata share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the shareholder’s pro rata share of W-2 wages of the S corporation. A partner’s allocable share or an S corporation shareholder’s pro rata share of the unadjusted basis of a partnership’s or S corporation’s qualified property is determined in the same manner as the partner’s or shareholder’s allocable or pro rata share of depreciation from the partnership or S corporation.
In addition to a 20 percent deduction for a taxpayer’s qualified business income, a 20 percent deduction is also available for (1) dividends from a REIT (other than any portion that is a capital gain dividend) and (2) qualified publicly traded partnership (PTP) income (generally including domestic business income allocated from a PTP and excluding investment related items from PTPs).
With respect to trusts and estates, rules similar to the rules under present-law section 199 (as in effect on December 1, 2017) apply for apportioning between fiduciaries and beneficiaries any W-2 wages and unadjusted basis of qualified property under the limitation based on W-2 wages and capital.
The Secretary is required to provide rules for applying the limitation in cases of a short taxable year or where the taxpayer acquires, or disposes of, the major portion of a trade or business or the major portion of a separate unit of a trade or business during the year. The Secretary is required to provide guidance applying rules similar to the rules of section 179(d)(2) to address acquisitions of property from a related party, as well as in a sale-leaseback or other transaction as needed to carry out the purposes of the provision and to provide anti-abuse rules, including under the limitation based on W-2 wages and capital. Similarly, the Secretary is required to provide guidance prescribing rules for determining the unadjusted basis immediately after acquisition of qualified property acquired in like-kind exchanges or involuntary conversions, and guidance for the application of the provision in the case of tiered entities.
The provision would apply to taxable years beginning after December 31, 2017, and would expire for taxable years beginning after December 31, 2025.
With the limitation on the property tax and mortgage deduction, elimination of the SALT deduction, and survival of a modified AMT, this is not going to play well in places like CA, NY, and similar high income tax/high property value states.
https://www.journalofaccountancy.com...201718070.html
The article lacked specifics on the treatment of income for passthrough entities. I started reading the actual legislation but, unless you had the current tax code in hand, was not self explanatory. I called several friends/business associates who are tax professionals for clarification. Below is the email I received today:
Passthrough provisions
The TCJA introduces new rules aimed at providing greater parity between the tax treatment of owners of passthrough entities and corporations but also includes guardrails intended to prevent passthrough owners from recharacterizing wage income as more lightly taxed business income.
20 percent deduction of domestic qualified business income: Under the TCJA conference agreement, an individual, estate, or trust taxpayer generally may deduct the sum of:
- 20 percent of the domestic qualified business income with respect to a qualified trade or business from a partnership, S corporation, or sole proprietorship (subject to certain limitations based on W-2 wages and capital and, with respect to specified service businesses, only below certain taxpayer income thresholds), and
- 20 percent of aggregate qualified REIT dividends, qualified cooperative dividends, and qualified publicly traded partnership income.
Qualified business income does not include any amount paid by an S corporation that is treated as reasonable compensation of the taxpayer. Similarly, qualified business income does not (to the extent provided in regulations) include any amount allocated or distributed by a partnership to a partner who is acting other than in his or her capacity as a partner for services rendered with respect to the trade or business, and does not include any amount that is a guaranteed payment for services actually rendered to or on behalf of a partnership to the extent that the payment is in the nature of remuneration for those services. In addition, qualified business income does not include certain investment-related income, gain, deductions, or loss.
For taxpayers with income lower than a threshold amount ($157,500 for single filers, $315,000 for joint filers, with any potential deduction phased out over the next $50,000 or $100,000 of taxable income, respectively), there is no wage limitation on the 20 percent deduction for qualified business income. (Note that the threshold amount is determined by reference to the taxpayer’s taxable income, which may include income from other sources.) These taxpayers also are not subject to the limitation on specified service businesses described below.
For taxpayers with income above a threshold amount, a limitation on the 20 percent deduction applies. With respect to each qualified trade or business, the amount of the deduction is limited to the greater of (1) 50 percent of the W-2 wages with respect to the qualified trade or business or (2) 25 percent of the W-2 wages with respect to the qualified trade or business plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property.
Qualified property means: (1) tangible property of a character subject to depreciation that is held by, and available for use in, the qualified trade or business at the close of the taxable year, (2) which is used in the production of qualified business income, and (3) for which the depreciable period has not ended before the close of the taxable year. The depreciable period with respect to qualified property of a taxpayer means the period beginning on the date the property is first placed in service by the taxpayer and ending on the later of (1) the date 10 years after that date, or (2) the last day of the last full year in the applicable recovery period that would apply to the property under section 168 (without regard to section 168(g)).
As mentioned above, a specified service business is not a qualified trade or business. A “specified service business” means any trade or business involving the performance of services in the fields of health, law, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners, or which involves the performance of services that consist of investing and investment management trading, or dealing in securities, partnership interests, or commodities. For this purpose a security and a commodity have the meanings provided in the rules for the mark-to-market accounting method for dealers in securities (sections 475(c)(2) and 475(e)(2), respectively. A specified service business, however, does not include a trade or business involving engineering or architecture.
In the case of a partnership or S corporation, the provision applies at the partner or shareholder level, as the case may be. Each partner takes into account the partner’s allocable share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the partner’s allocable share of W-2 wages of the partnership. The partner’s allocable share of W-2 wages is required to be determined in the same manner as the partner’s share of wage expenses. Similarly, each shareholder of an S corporation takes into account the shareholder’s pro rata share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the shareholder’s pro rata share of W-2 wages of the S corporation. A partner’s allocable share or an S corporation shareholder’s pro rata share of the unadjusted basis of a partnership’s or S corporation’s qualified property is determined in the same manner as the partner’s or shareholder’s allocable or pro rata share of depreciation from the partnership or S corporation.
In addition to a 20 percent deduction for a taxpayer’s qualified business income, a 20 percent deduction is also available for (1) dividends from a REIT (other than any portion that is a capital gain dividend) and (2) qualified publicly traded partnership (PTP) income (generally including domestic business income allocated from a PTP and excluding investment related items from PTPs).
With respect to trusts and estates, rules similar to the rules under present-law section 199 (as in effect on December 1, 2017) apply for apportioning between fiduciaries and beneficiaries any W-2 wages and unadjusted basis of qualified property under the limitation based on W-2 wages and capital.
The Secretary is required to provide rules for applying the limitation in cases of a short taxable year or where the taxpayer acquires, or disposes of, the major portion of a trade or business or the major portion of a separate unit of a trade or business during the year. The Secretary is required to provide guidance applying rules similar to the rules of section 179(d)(2) to address acquisitions of property from a related party, as well as in a sale-leaseback or other transaction as needed to carry out the purposes of the provision and to provide anti-abuse rules, including under the limitation based on W-2 wages and capital. Similarly, the Secretary is required to provide guidance prescribing rules for determining the unadjusted basis immediately after acquisition of qualified property acquired in like-kind exchanges or involuntary conversions, and guidance for the application of the provision in the case of tiered entities.
The provision would apply to taxable years beginning after December 31, 2017, and would expire for taxable years beginning after December 31, 2025.
With the limitation on the property tax and mortgage deduction, elimination of the SALT deduction, and survival of a modified AMT, this is not going to play well in places like CA, NY, and similar high income tax/high property value states.
#47
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It’s much more fun to invest in GT cars than PAG stocks, Or any stocks, While a terrible rate of return this way, but oh so much fun. Grew up in a solid middle class family only to see my old man invest and reinvest in the market, while never enjoying the profits. Long story, short version he passed away young with a nice portfolio and nothing more. It was a shame he didn’t enjoy his rate of return purchasing what he desirered but rather chase more wealth only to pass away at 69 years of age. Guesss that’s my motivator to spend my earnings and leave the family some nice GT cars instead of any weslth. Stupid in the fiscal responsibility, but oh so much fun. I may die poor, but 9K revs is my heaven on earth.
#48
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Careful, this thread is on the verge of being forcibly moved to the abyss of group-think known as the Off-Topic Politics and Controversey sub-forum...
It’d be nice to keep it here for a while longer!
It’d be nice to keep it here for a while longer!
Last edited by Mech33; 12-23-2017 at 12:05 AM.
#49
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When the stock market surges, people spend more money. Here is one of a million articles that provide data to support this point: https://www.investopedia.com/ask/ans...businesses.asp
So yes the surging market helps everyone even if you are not invested in the market.
Wrong. Because:
2. Over 35% of "market rally" is held by retirement accounts who are clearly not "spend their money" as it is tied up until you retire. The vast majority of the remainder is owned by corporations, endowment funds, insurance companies, and other similar vehicles.
2. Over 35% of "market rally" is held by retirement accounts who are clearly not "spend their money" as it is tied up until you retire. The vast majority of the remainder is owned by corporations, endowment funds, insurance companies, and other similar vehicles.
The market capitalization of the S&P 500 is about $24 trillion. You make it sound as if nobody has any money invested outside of their retirement accounts. That is just not the case.
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Last edited by subshooter; 12-23-2017 at 10:21 AM.
#50
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Thanks! Good info.
Last Saturday night my wife was running late for a dinner party. Since I had some free time I decided to look at the tax reform legislation and read the following article:
https://www.journalofaccountancy.com...201718070.html
The article lacked specifics on the treatment of income for passthrough entities. I started reading the actual legislation but, unless you had the current tax code in hand, was not self explanatory. I called several friends/business associates who are tax professionals for clarification. Below is the email I received today:
Passthrough provisions
The TCJA introduces new rules aimed at providing greater parity between the tax treatment of owners of passthrough entities and corporations but also includes guardrails intended to prevent passthrough owners from recharacterizing wage income as more lightly taxed business income.
20 percent deduction of domestic qualified business income: Under the TCJA conference agreement, an individual, estate, or trust taxpayer generally may deduct the sum of:
Qualified business income does not include any amount paid by an S corporation that is treated as reasonable compensation of the taxpayer. Similarly, qualified business income does not (to the extent provided in regulations) include any amount allocated or distributed by a partnership to a partner who is acting other than in his or her capacity as a partner for services rendered with respect to the trade or business, and does not include any amount that is a guaranteed payment for services actually rendered to or on behalf of a partnership to the extent that the payment is in the nature of remuneration for those services. In addition, qualified business income does not include certain investment-related income, gain, deductions, or loss.
For taxpayers with income lower than a threshold amount ($157,500 for single filers, $315,000 for joint filers, with any potential deduction phased out over the next $50,000 or $100,000 of taxable income, respectively), there is no wage limitation on the 20 percent deduction for qualified business income. (Note that the threshold amount is determined by reference to the taxpayer’s taxable income, which may include income from other sources.) These taxpayers also are not subject to the limitation on specified service businesses described below.
For taxpayers with income above a threshold amount, a limitation on the 20 percent deduction applies. With respect to each qualified trade or business, the amount of the deduction is limited to the greater of (1) 50 percent of the W-2 wages with respect to the qualified trade or business or (2) 25 percent of the W-2 wages with respect to the qualified trade or business plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property.
Qualified property means: (1) tangible property of a character subject to depreciation that is held by, and available for use in, the qualified trade or business at the close of the taxable year, (2) which is used in the production of qualified business income, and (3) for which the depreciable period has not ended before the close of the taxable year. The depreciable period with respect to qualified property of a taxpayer means the period beginning on the date the property is first placed in service by the taxpayer and ending on the later of (1) the date 10 years after that date, or (2) the last day of the last full year in the applicable recovery period that would apply to the property under section 168 (without regard to section 168(g)).
As mentioned above, a specified service business is not a qualified trade or business. A “specified service business” means any trade or business involving the performance of services in the fields of health, law, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners, or which involves the performance of services that consist of investing and investment management trading, or dealing in securities, partnership interests, or commodities. For this purpose a security and a commodity have the meanings provided in the rules for the mark-to-market accounting method for dealers in securities (sections 475(c)(2) and 475(e)(2), respectively. A specified service business, however, does not include a trade or business involving engineering or architecture.
In the case of a partnership or S corporation, the provision applies at the partner or shareholder level, as the case may be. Each partner takes into account the partner’s allocable share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the partner’s allocable share of W-2 wages of the partnership. The partner’s allocable share of W-2 wages is required to be determined in the same manner as the partner’s share of wage expenses. Similarly, each shareholder of an S corporation takes into account the shareholder’s pro rata share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the shareholder’s pro rata share of W-2 wages of the S corporation. A partner’s allocable share or an S corporation shareholder’s pro rata share of the unadjusted basis of a partnership’s or S corporation’s qualified property is determined in the same manner as the partner’s or shareholder’s allocable or pro rata share of depreciation from the partnership or S corporation.
In addition to a 20 percent deduction for a taxpayer’s qualified business income, a 20 percent deduction is also available for (1) dividends from a REIT (other than any portion that is a capital gain dividend) and (2) qualified publicly traded partnership (PTP) income (generally including domestic business income allocated from a PTP and excluding investment related items from PTPs).
With respect to trusts and estates, rules similar to the rules under present-law section 199 (as in effect on December 1, 2017) apply for apportioning between fiduciaries and beneficiaries any W-2 wages and unadjusted basis of qualified property under the limitation based on W-2 wages and capital.
The Secretary is required to provide rules for applying the limitation in cases of a short taxable year or where the taxpayer acquires, or disposes of, the major portion of a trade or business or the major portion of a separate unit of a trade or business during the year. The Secretary is required to provide guidance applying rules similar to the rules of section 179(d)(2) to address acquisitions of property from a related party, as well as in a sale-leaseback or other transaction as needed to carry out the purposes of the provision and to provide anti-abuse rules, including under the limitation based on W-2 wages and capital. Similarly, the Secretary is required to provide guidance prescribing rules for determining the unadjusted basis immediately after acquisition of qualified property acquired in like-kind exchanges or involuntary conversions, and guidance for the application of the provision in the case of tiered entities.
The provision would apply to taxable years beginning after December 31, 2017, and would expire for taxable years beginning after December 31, 2025.
With the limitation on the property tax and mortgage deduction, elimination of the SALT deduction, and survival of a modified AMT, this is not going to play well in places like CA, NY, and similar high income tax/high property value states.
https://www.journalofaccountancy.com...201718070.html
The article lacked specifics on the treatment of income for passthrough entities. I started reading the actual legislation but, unless you had the current tax code in hand, was not self explanatory. I called several friends/business associates who are tax professionals for clarification. Below is the email I received today:
Passthrough provisions
The TCJA introduces new rules aimed at providing greater parity between the tax treatment of owners of passthrough entities and corporations but also includes guardrails intended to prevent passthrough owners from recharacterizing wage income as more lightly taxed business income.
20 percent deduction of domestic qualified business income: Under the TCJA conference agreement, an individual, estate, or trust taxpayer generally may deduct the sum of:
- 20 percent of the domestic qualified business income with respect to a qualified trade or business from a partnership, S corporation, or sole proprietorship (subject to certain limitations based on W-2 wages and capital and, with respect to specified service businesses, only below certain taxpayer income thresholds), and
- 20 percent of aggregate qualified REIT dividends, qualified cooperative dividends, and qualified publicly traded partnership income.
Qualified business income does not include any amount paid by an S corporation that is treated as reasonable compensation of the taxpayer. Similarly, qualified business income does not (to the extent provided in regulations) include any amount allocated or distributed by a partnership to a partner who is acting other than in his or her capacity as a partner for services rendered with respect to the trade or business, and does not include any amount that is a guaranteed payment for services actually rendered to or on behalf of a partnership to the extent that the payment is in the nature of remuneration for those services. In addition, qualified business income does not include certain investment-related income, gain, deductions, or loss.
For taxpayers with income lower than a threshold amount ($157,500 for single filers, $315,000 for joint filers, with any potential deduction phased out over the next $50,000 or $100,000 of taxable income, respectively), there is no wage limitation on the 20 percent deduction for qualified business income. (Note that the threshold amount is determined by reference to the taxpayer’s taxable income, which may include income from other sources.) These taxpayers also are not subject to the limitation on specified service businesses described below.
For taxpayers with income above a threshold amount, a limitation on the 20 percent deduction applies. With respect to each qualified trade or business, the amount of the deduction is limited to the greater of (1) 50 percent of the W-2 wages with respect to the qualified trade or business or (2) 25 percent of the W-2 wages with respect to the qualified trade or business plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property.
Qualified property means: (1) tangible property of a character subject to depreciation that is held by, and available for use in, the qualified trade or business at the close of the taxable year, (2) which is used in the production of qualified business income, and (3) for which the depreciable period has not ended before the close of the taxable year. The depreciable period with respect to qualified property of a taxpayer means the period beginning on the date the property is first placed in service by the taxpayer and ending on the later of (1) the date 10 years after that date, or (2) the last day of the last full year in the applicable recovery period that would apply to the property under section 168 (without regard to section 168(g)).
As mentioned above, a specified service business is not a qualified trade or business. A “specified service business” means any trade or business involving the performance of services in the fields of health, law, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners, or which involves the performance of services that consist of investing and investment management trading, or dealing in securities, partnership interests, or commodities. For this purpose a security and a commodity have the meanings provided in the rules for the mark-to-market accounting method for dealers in securities (sections 475(c)(2) and 475(e)(2), respectively. A specified service business, however, does not include a trade or business involving engineering or architecture.
In the case of a partnership or S corporation, the provision applies at the partner or shareholder level, as the case may be. Each partner takes into account the partner’s allocable share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the partner’s allocable share of W-2 wages of the partnership. The partner’s allocable share of W-2 wages is required to be determined in the same manner as the partner’s share of wage expenses. Similarly, each shareholder of an S corporation takes into account the shareholder’s pro rata share of each qualified item of income, gain, deduction, and loss, and is treated as having W-2 wages for the taxable year equal to the shareholder’s pro rata share of W-2 wages of the S corporation. A partner’s allocable share or an S corporation shareholder’s pro rata share of the unadjusted basis of a partnership’s or S corporation’s qualified property is determined in the same manner as the partner’s or shareholder’s allocable or pro rata share of depreciation from the partnership or S corporation.
In addition to a 20 percent deduction for a taxpayer’s qualified business income, a 20 percent deduction is also available for (1) dividends from a REIT (other than any portion that is a capital gain dividend) and (2) qualified publicly traded partnership (PTP) income (generally including domestic business income allocated from a PTP and excluding investment related items from PTPs).
With respect to trusts and estates, rules similar to the rules under present-law section 199 (as in effect on December 1, 2017) apply for apportioning between fiduciaries and beneficiaries any W-2 wages and unadjusted basis of qualified property under the limitation based on W-2 wages and capital.
The Secretary is required to provide rules for applying the limitation in cases of a short taxable year or where the taxpayer acquires, or disposes of, the major portion of a trade or business or the major portion of a separate unit of a trade or business during the year. The Secretary is required to provide guidance applying rules similar to the rules of section 179(d)(2) to address acquisitions of property from a related party, as well as in a sale-leaseback or other transaction as needed to carry out the purposes of the provision and to provide anti-abuse rules, including under the limitation based on W-2 wages and capital. Similarly, the Secretary is required to provide guidance prescribing rules for determining the unadjusted basis immediately after acquisition of qualified property acquired in like-kind exchanges or involuntary conversions, and guidance for the application of the provision in the case of tiered entities.
The provision would apply to taxable years beginning after December 31, 2017, and would expire for taxable years beginning after December 31, 2025.
With the limitation on the property tax and mortgage deduction, elimination of the SALT deduction, and survival of a modified AMT, this is not going to play well in places like CA, NY, and similar high income tax/high property value states.
#51
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This is an important post:to answer the OP question.
Not a tax attorney here, but according to this statement and a PWC paper I read; prepayment of 2018 taxes (Property, Income, Sales) cannot be deducted n 2017.
The conference agreement also provides that, in the case of an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, the payment shall be treated as paid on the last day of the taxable year for which such tax is so imposed for purposes of applying the provision limiting the dollar amount of the deduction. Thus, under the provision, an individual may not claim an itemized deduction in 2017 on a pre-payment of income tax for a future taxable year in order to avoid the dollar limitation applicable for taxable years beginning after 2017.”
#52
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- What growth in the economy (GDP) would you see with and without the new tax law?
- What would be the impact to the economy if the deficit increases as much as some say it will?
- Is it sensible to be giving tax cuts when the economy is doing well, versus when an economy is failing and you want to stoke it?
#53
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#54
Race Director
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I can see a crackdown coming on people claiming their primary residence is in Texas, Florida, Nevada, etc. to avoid paying income tax in California, New York, New Jersey, etc. Those states are not going to allow that revenue to disappear without a fight.
#55
Race Director
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Originally Posted by robmypro
I can see a crackdown coming on people claiming their primary residence is in Texas, Florida, Nevada, etc. to avoid paying income tax in California, New York, New Jersey, etc. Those states are not going to allow that revenue to disappear without a fight.
What will and is happening, is that people are leaving those states for good. Even CA growth rate has slowed considerably. Less than 1% I believe.
That is even worse news for these over taxed states as tax revenues will plummet as people move out leaving them in even worse fiscal shape. These states have pushed too hard with over spending and over taxing which has caught up with them.
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#56
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What will and is happening, is that people are leaving those states for good. Even CA growth rate has slowed considerably. Less than 1% I believe.
That is even worse news for these over taxed states as tax revenues will plummet as people move out leaving them in even worse fiscal shape. These states have pushed too hard with over spending and over taxing which has caught up with them.
That is even worse news for these over taxed states as tax revenues will plummet as people move out leaving them in even worse fiscal shape. These states have pushed too hard with over spending and over taxing which has caught up with them.
- Ownership or lease of real estate.
- Business interests or employment.
- Schools used by children.
- Membership in clubs.
- Bank accounts or safety deposit boxes.
- Use of professional services such as accountants, doctors, dentists and lawyers.
- Automobile registration and license.
- Family ties and social life.
- Appearance in telephone or social directories.
- Location of personal belongings such as clothing, family photo albums or kitchenware.
- Jury duty.
#57
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In Virginia I pay 5.75% income tax, approx 1% property tax on my real estate and somewhere just over 4% on my cars’ assessed value. This car tax is in addition to the sales tax and it is billed every single year. So I get a massive bill for my RS that I can no longer deduct. Everyone in VA hates the car tax. I just may sell it.
Last edited by Jon70; 12-23-2017 at 09:32 PM.