SILVAR. How Tax Reform will Affect BA Real Estate


Many will stay. But kids move all over. There was a migratory pattern that was disrupted by the 2009 crisis.
That pattern is coming back… Probably The largest bunch are moving to Sacramento exburbs and suburbs like me…


I don’t remember exactly lately since my brother has been taking care of it but my mom pays about 1.5K total property tax for 3 units in SF. Yes, bought in early 1960s… Uh, we ain’t selling…


So YOU are the reason why we have housing shortage!


Dang, how did a measly 3 unit building become the source of our housing shortage?..:roll_eyes:


I know a family on Los Altos Hills. They paid $69k way back when. The house was listed a little over $70k. He negotiated it down with the builder because, “paying $70,000 for a house seemed crazy”. It’s worth over $4m today and the property taxes are tiny.


These stories are an extreme minority. Most boomers traded up. They did not stop in their starter homes…
Most paid $300k or more on average… So if they move to other states their property tax will go down. What is keeping many from moving is capital gains taxes. Those $300k homes of 30 years ago are now $1.5m
So their gain may be $1m and only 500k is sheltered.
In any case many will sell in the next 20 years.
They should do the numbers. If they have a $100k pension including SS. Their extra state income taxes over Nevada are probably $8k year.
If they move to Nevada they would have to pay $150k in cap gains tax. But they can buy a house for $350k live off the $1m net after tax gain… Enough for most till death
In addition to the $100k pension …


Well the tax bill just passed the senate. It’s a done deal. Let’s see if it will have any effect on house prices. CA people, esp W2 wage earners, got screwed royally.

Next time vote wisely. :wink:


Let’s how the market reacts on Monday.

Despite what liberals think of Trump, he pushes tax reform through faster than Obama pushes healthcare act.


And SV trump supporters voted to have their taxes increased. Brings smile to my face every time I think about it. :smile:


The bill is still not yet finalized. Saturday’s vote means the Senate and House have passed similar tax reform plans, but negotiators from both chambers will start meeting Monday to agree on a single piece of legislation that both chambers must approve before it is sent to President Donald Trump for his signature.

Only about 5 percent of all taxpayers are subject to the AMT, nearly all of them high earners. Few households with less than $200,000 in income are subject to the AMT, with those earning between $200,000 and $500,000 most likely to incur AMT liability. These taxpayers are already unable to claim the state and local tax deduction, a fact that is important to bear in mind when considering the implications of limiting the state and local tax deduction.

Look like not much impact on Fortress prices.


Didn’t matter how Californians voted in the 2016 election. Thanks to the electoral college.
This was a pure Red state victory. The results will be tested in 2018… Let’s see how it affects the Red states… If they are happy with the results, the House will retain its majority if not Trump gets impeached with a Democratic majority in 2019.


Current rate for $200k income without deductions.
What will the new tax be? Looks like the blended effective fed rate will be a little lower. Maybe 18%


Californians voting for trump didn’t change the election result. True. But they voted against their own self interests. That’s what’s so amusing to me.

2018 will be super interesting.


Have you calculated your 2018 income tax under the Senate plan?


My taxes are super complicated. All my income is pass thru from LLC. I will let my CPA figure it out.


The calculator helps just for comparison
The point is the fed tax under Senate plan seems to be low enough to compensate for the lack of write off of state income taxes… at least in the 100-500k range… Retaining the $10k property tax deduction helps BA real estate more than the House version…


It’s not clear if Californians will pay more tax. It could be less. CPAs need to calculate, don’t blindly believe in propaganda.

Even if Californians do get a tax cut, Californian’s aggregate federal tax could be a higher percentage of the total federal tax revenue. But this is different than a higher tax for Californians.

Exclusion of state income tax may make 46 states happy and 4 states sad. Politically its impact is negligible since all the high state income states are ultra deep blue. It could make the red states happier but happy people may vote less


You are assuming Hilary wouldn’t have increased tax. That may or may not be true.:grinning:


It was clear Hillary would increase my taxes. But with electoral college the only way to have a vote is move to a swing state. Blue states will always vote blue same with red. So the few purple states pick the president. Of course he could always be impeached… all my liberal friends are convinced he will be… However he won’t with a Republican majority in Congress


Human beings are emotional animals. Most do not want to face the fact, they just want their emotions to erupt as words