It gives me the sensation of watching a boring movie that I already watched, the one where the gladiators are killing each other to kiss the lion that will eat them alive.
There we go people! The most inept and disastrous administration ever!
Washington (CNN)Threatening the GOPâs top priority of passing major tax reform, Republican Rep. Tom MacArthur warned Tuesday night that so many House Republicans are frustrated with plans to nix a popular deduction, they could block the budget this week. <----------
âI havenât done a whip count, but yes, I think thereâs enough,â the New Jersey congressman told reporters.
Meanwhile, Republican leaders, who can afford to lose only 22 members of their caucus, are scrambling to find a solution that would get enough Republicans on board to move forward with the budget, which is considered the first step in tax reform.
The Republican tax reform framework proposes eliminating the State and Local Tax deduction (SALT), a popular tax break that affects nearly one-third of filers, letting them deduct levies like state income taxes and property taxes. Itâs been in place since the birth of the federal income tax in 1913.
About 30 GOP members represent districts that heavily rely on the deduction, and if they stick together they could derail the resolution. <----------
Ok. Iâm glad you brought up this topic. I have QUESTIONS!!! about duplexes.
Someone was helping me run through some math, but he suggested that I check with someone more knowledgable regarding tax deductions.
If you buy a duplex, say a 3BR 2BA / 2BR 1BA duplex at $1.5M, he says you should be able to deduct various expenses (as of now).
Letâs assume that mortgage+insurance+taxes = $7500/month
Letâs assume rent is $2500/month
Can we assume that we split the value of owner occupied/rental as a percentage of the square footage? If not, how do you split it? Letâs assume that however you split it, itâs 60% owner occupied 40% other side, though.
He says the deductions are the following:
%age of cost of the rental side / 27.5 years as depreciation (he said though, you only deduct building value, not land value, so how do you guys normally figure that out?)
Mortgage+interest+taxes-rent on rental as a business expense so (40% * $7500/month - $2500 = $500) as a tax deduction.
Interest on your side as a personal deduction (I separate this out, because I know thereâs a limit on thatâ$1M?).
Sorry I canât help you on this. Only if you are going to use the money of any sale like this and want the money to not go to a 1031 exchange, deferral of capital gains are my thing.
Your fellow landlords can tell you more than me about depreciation schedules, deductions and whatnot.
Just hurry up before the tax deductions are eliminated. There are some vampires in congress willing to bleed the American people to give the rich and famous their fair share.
Go 80% on the building and 20% land for the rental part depreciation. âŚThe rest looks goodâŚYou can deduct a lot of money for maintenance and repairs tooâŚExpense out as much capital improvement as possibleâŚ
I think if your combined family income is more than $150K/year, you cannot deduct rental losses unless you are a full-time real estate professional. Please double check though.
Iâd be perfectly happy with no deductions except an increased standard deduction near the poverty line and lower tax rates. Let everyone do their taxes with a post card and fire up the economy. Completely eliminate special treatment of different industries with tax deductions and credits. Thatâs not realistic. Theyâll have to keep some deductions due to their popularity. Thatâs despite the fact a larger standard deduction would mean 90% of people wouldnât itemize deductions. Thatâs how dumb the public is about taxes.
To do so, flat tax rates all over. No tax deductions for RE investors, no depreciation schedule, treat a homeowner as a landlord the same, you are on your own so we have a free market economy.
I give or take 6 years, then weâll need a democrat government to rescue us from the next recession.
In any scenario, they will be relying on projections of increased economic growth from tax cuts to offset the revenue losses from those cuts, known as âdynamic scoring.â But even under the rosiest of projections, growth alone wonât be enough to offset the full losses from the deepest cuts Republicans have proposed. A large contingent of economists â and even some Republicans themselves â have already called these growth projections unrealistic. Many are skeptical whether the Senate Parliamentarian will accept those growth numbers.
The CBOâs score of the bill will play a big role in estimating the effects of this tax package, and how the Senate Parliamentarian, whose role it is to advise whether or not bills adhere to budgetary procedure, will rule.
Already the deficit question is looking like it will be a massive challenge. As I explained above, some of the proposals in the tax reform framework are already showing that they will increase the deficit by trillions of dollars. Changes to the corporate tax rate, for example, would cost more than $4.1 trillion from 2028 to 2037, according to the Tax Policy Center.
Itâs all a question of which tricks Republicans will be allowed to sneak through the Senate and how ambitious they plan to be with reforming the tax code. Whichever path they chose, however, there will be roadblocks ahead.
The GOPâs tax plan would cause revenue to drop between $2.4 trillion and $2.5 trillion over the course of a decade, even after economic growth is taken into account, according to an analysis from the Urban-Brookings Tax Policy Center.
The Tax Policy Centerâs initial September analysis of the plan drew fire from some conservatives for not including the effects of economic growth on revenues.
The updated report found almost no difference with growth effects, called dynamic scoring.
âThe outline would reduce federal tax revenue by roughly $2.4 [trillion] over the next decade, nearly the same as under conventional scoring,â the Tax Policy Centerâs Howard Gleckman wrote in a blog post on the matter.
In the second decade, the center added, revenues would fall by $3.4 trillion
I see my friend investors are happy the property tax deductions is going away. I am happy for them.
The only Republican in the cityâs Congressional delegation slammed President Trumpâs tax plan, saying the elimination of a key tax deduction would wallop New Yorkers.
Staten Island Rep. Dan Donovan said on the John Catsimatidis AM 970 radio show that he couldnât support a tax bill that ends the deductibility of state and local taxes.
âThe elimination of this deduction would make it so people in New York couldnât buy homes anymore, couldnât pay their mortgages, couldnât pay their childrenâs tuition,â he said.
One key consideration involves a compromise that Brady offered on tax breaks for individuals in high-tax states: allowing individuals to deduct the cost of their state and local property taxes. That benefit would be capped at $10,000, according to the memo. <---------
SOMEWHERE, SOMEONE SAID THEY WOULD-COULD-SHOULD SIMPLIFY THE TAX CODE
The bill would reduce the top rate to 25 percent â but place limits on the kind of income that would qualify, said a person aware of the details. First, âprofessional servicesâ â including doctors, lawyers, accountants and others â wouldnât qualify for the rate.
Other business owners could chose one of two options: 1. Categorize 70 percent of their income as wages â and pay their individual tax rate on it â and 30 percent as business income, taxable at the 25 percent rate. Or 2. Set the ratio of their wage income to business income based on the level of their capital investment.
Earlier Wednesday, Meadows predicted a bumpy ride for the House bill, saying it would unleash dissent âlike youâve never seen.â Still, that doesnât mean the effort will fail, he said.
Somebody here, do I need to mention his name, loves to mention Ted Cruz.
Sen. Ted Cruz (R-Texas) on Tuesday criticized the House GOP tax plan for likely raising taxes on individuals in high-tax states such as New York and California and called for language to repeal the individual mandate to produce more revenue.
Cruz called raising taxes on people in wealthy, staunchly Democratic states such as New York and California âa mistake.â
