Trump tax plan discourages home ownership, esp bay area, as Deductions for state and local taxes would be eliminated. Many BA home owners pay high state tax that will not be allowed , if accepted, going forward !
Here, Trump hit all high earners !
Interesting⌠hence why I hate stocks. Granted, it is early in the game and nothing has been finalized yet regarding tax reform but one should have reasonably expected Intuit, the maker of Turbo Tax, to feel it (negatively) today in its stock price no? I didnât check the headlines, but why would it instead go up nearly 9 bucks a share? Crazy⌠I will stick to brick and mortar REAL ESTATE!!!
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I think it does more to discourage ownership outside the BA. Nationally, the median home price is $306k. They arenât close to $24k in interest to itemize, so theyâll take standard deduction. For most people, ownership isnât a tax benefit anymore⌠Plus, thereâs the loss of property tax deduction. Even at a more normal interest rate of 7%, only those buying a home over $428k (20% down) would itemize their first year. Then the interest paid becomes less, and itâs below standard deduction. At current rates, only homes over $705k (20% down) would create enough interest to itemize their first year. Then the interest is below standard deduction. .
Eliminating the deduction for property tax makes owning less appealing (especially in states with high property taxes). Eliminating the deduction for state income tax makes living in states with high income tax rates less appealing. California could become a lot less appealing. The federal government wouldnât be subsidizing the sky high CA taxes people pay.
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Common sense telling us this would crash the housing market in bay area. But after government proposing all kind of anti real estate in hk/china, housing still goes up even crazier. So hard to tell
But yes, we pretty much fxxked. how much are we paying more, weâll have to see with more details. Maybe the brackets increases for 10%(couple up to 250k) and 25%(couple up to 400k), then it might offset those deduction. But no one knows yet. Trump is always ask big and negotiate down, we might end up able to deduct mortgage interest on top of the 24k . never know.
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Right, The Donald likes to use the shotgun approach where he fires out half-arsed legislation that is more than likely not fully baked yet just to see response and comments and finally (hopefully) something sticks. Damn it, Hillary, why did you use that personal email account???
Itâs up because they announced their sales during tax season were higher than last year and reiterated their full-year guidance. Thatâs a surprise, since the tax season started out with much slower sales than prior years. There was serious concern thereâd be a YoY sales decline. The gain isnât related to the Trump plan. The stock was down on the announcement of the plan.
Maybe people think that customers will pay the same fee to have their taxes done even though they will be much simpler. Thatâd definitely increase their profits. If the new tax code really is that simple, they could code that with a tiny team compared to what they have now. If the revenue is the same, then profitability would be amazing.
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Ok, figured that, that earnings or sales were up. Hey, higher you go, the bigger the fall right? God, I wonder if mom and pop CPA firms are worried that more clients will exit, stage left if the tax code is simplified dramatically?
This is a zero sum event. If you canât deduct your state income tax, you donât have to add it to your income before AGI.
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You sure? Thatâd be a change to the W-2 calculations.
I was referring to the state income tax refund that you added back to your taxable income before calculating AGI.
âIn general, if you didnât deduct state and local income taxes last year, you donât need to pay taxes on your state and local tax refund this year.â
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Itâs time to wheel out this old story about how your friendly TurboTax lobbies Congress against simplifying tax returns.
You know whatâs easier than filing a simple return? Not even needing to file one. IRS has all the data how much you make anyway. Why not let the IRS do the math for you? At least have that option so people automatically get their tax refund? Right now many millions sit there uncollected. And many low income folks miss out on earned income credit.
That makes sense. The state tax refund is usually way less than you pay in a given year though.
If state income tax and property tax is not deductible, maybe people will vote against state income taxes and will require lowering property taxes.
State income income only affects elites more. Property tax affects everyone. It would seems more likely to limit property tax and increase state income tax on the small number of high earning Californian elites.
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because you donât understand the drivers 
Usually the implementation is screwed, so need a software to help navigate the initial rollout of the tax system. So buy tax software and the company selling them.
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For sure, I give you thatâŚbut I like real estate porn more
You must see Amzn and googl after hours!
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There is no incentive to keep primary mortgage with low teasing rates anymore!
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Goog and Amzn have exploded. Goog might hit 1000$ in the next 2 months. Amzn will get there in 2 weeks i think.
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AMZN is already at 955 after hour. Maybe it will get to 1000 tomorrow? 
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CA already does that with the âtemporaryâ 13%+ tax rate on income over $1M. It was due to expire, and they extended the âtemporaryâ tax hike. Once they get it, the state isnât going to give up, and the public isnât going to feel sorry for people earning over $1M/yr.
I find amusing when the public cheers tax increases on the rich and think their taxes will never go up. The government always starts with the rich first and expands the increases later. The original threshold for income tax was so high that only 7% of people had to pay income taxes. The middle class didnât care, since they didnât have to pay it. We can all see how that one turned out.
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