Detailed Breakdown of New Tax Law

Got this from my CPA. It has a big and detailed table comparing the old vs the new. Very helpful and the most detailed I have seen so far:


RE investors should be familiar with the “paper loss” from depreciation and whatnot. Here’s what’s changed:

Net Operating Loss (NOL) Deduction


Generally a NOL may be carried back 2 years and any remaining balance is then carried forward until used up or a maximum of 20 years unless the taxpayer elects to forego the carryback and carry the loss forward only.


The 2-year carryback provision is generally repealed after 2017 except for certain farm losses.

Beginning after December 31, 2017, the NOL deduction is limited to 80% of taxable income (determined without regard to the NOL deduction) for losses arising in taxable years beginning after December 31, 2017.

Also the conference bill retain the old depreciation schedule for both residential and commercial properties. 1031 is now limited to real estate only. Before you can 1031 art paintings and private jets for example. I guess Trump only has RE and not much into paintings.

1 Like

That clause is why a lot of big companies paid zero taxes for years after the financial crisis. They had massive losses to carry forward. A lot of it was paper losses from writing off the value of acquisitions, and they got to use that to avoid taxes. I think it’s a good change.

1 Like

Only the carryback is scrapped. Carry forward still there it seems.

Thanks for sharing this. I was looking for confirmation whether the tax free capital gain exclusion of up to $500k was changed wrt residence tenure. Your link confirms it wasn’t!

This was also covered on NPR this morning (the proposal by Kevin De Leon)

1 Like

Anything we in CA can do to stop sending our hard earned taxes to the golfing crew in the white house is an improvement.

Now, at our office, we’ll have a class-meeting to study the new changes. Some companies-small corps are going to suffer with the new laws. Redoing what they did before is costly, sometimes.

People should be asking why state and local governments need such a large portion of their income. Are they getting an effective return on the money?

It’s sad when 4 of my 5 largest bills were taxes (federal income, state income, FICA, and property tax). The mortgage was the only non-tax to make the top 5.


Can California allow deducting federal income tax for state income filing? It’s hypocritical to disallow federal tax deduction and fight to keep SALT deduction


People with integrity should be asking why all that golfing with no return for the taxpayer after that lying president promised not to do it.

$90+ million on a lazy guy is too much for kids going to school with stomachache for being hungry.

Agreed. was never aware that we couldn’t detect fed tax till the earlier thread where it was surfaced

Detailed information of how the new tax reform will help…corporations, rather than Americans.

Home Depot also is increasing its investment, modernizing the front end of its top 40 stores and introducing more automation to its supply chain. Over the next three years, the company plans to spend $8.2 billion on capital improvements compared with more than $27 billion on share buybacks and dividends.

The retailer’s announcement, which included no major hiring, was just the latest indication that the $1.5 trillion tax cut may not have the intended effect upon corporate investment and the overall economy.

Funny, the hiring signs in the HD that I visit occasionally is always up. What is the point of increasing hiring when you can’t even fill up current posts?


Someone has to design and build all that equipment they are buying. That’s where the job creation will be. $8.2B creates a lot of jobs. We might be about to witness a capital investing bonanza. It could get productivity growth going again which is the key to real GDP (after adjusting for inflation). That creates higher wages.

One point of conversation out. Many stores have signs for hire.

I was talking to one of my clients, a pizza place owner, and that’s what he told me. Why? They are not paying livable wages, even after the announced tax cuts, that’s one reason of the unintended consequences of lying about cutting taxes and not enforcing a minimum wage for the benefited companies.

Win, win for both, plenty of money to be spent.

Something we saw coming:

And stock buyout.
Nothing good 100% for the employee.

Not that many new jobs will be created because of tax reform. We capitalists would get rich though. Corps will use the money for buybacks and dividend. Imagine getting 200B worth of that from AAPL… :thinking:


Home Cheapo is telling us, as a slap on the face of those supporting something many economist warned would be a disaster, that it wouldn’t benefit Joe the shoe shiner.

Automation is wiping out jobs. That’s a fact. What is done to replace those positions disappearing?

Tax reform is similar to a thief telling you the owner of a home in Beverly Hills that he will take care of it while you are on vacation.

What I see it is an idea that is OK for all people playing with the stock market, not many I would say, to get richer while the poor is getting poorer. That worries me, they may start sharpening the guillotine in the next civil war. Or, riots. Whichever comes first. It just takes an anarchist to yell fire!

We’re going to get richer regardless of policies. That’s what successful people do. It’s about having the right habits to build wealth.

I think I see why going of the gold standard was the start of the wealth gap growing. It rewarding people that borrow money to create income. You get to borrow at today’s value of the dollar. You get to pay back the loan with future dollars which are worth less. It completely changed the game for people that use debt to create income for themselves. People who aren’t doing that got completely left behind.

1 Like

Hmm, the federal reserve says tax cuts increase economic growth. Meanwhile, a bunch of journalists with liberal arts degrees are writing about how the new tax law will damage the economy.

LOL…anybody praising the federal reserve, the enemy of any conservative idea fan should hang his boots and go fishing.