Retired 15 years ago. wuqijun could play video games, very fun and addictive. My favorite is Diablo. He can play Starcraft or Wuxia. First person shooter games would be too hard for him, right?
Angel invest: no
Good you are doing yoga. My neck and back gives me hint on yoga, still have not done anything yet.
There are easier stretching exercises than yoga. They are just as effective.
I need to learn some simple and effective stretching exercise that I can do anywhere and anytime. Any YouTube video or for sale videos?
I have my own routine… I learned it from a gym instructor in Taiwan. You can definitely follow other videos on Youtube though.
Above no longer true. Tax payable is increased to $189,499 using the latest combined version. Not $178939. So there would be a tax hike of about $8.4k instead of tax saving of $2k.
Having let Turbotax do all the computation, forgot all the rules.
Realized that what is considered income earned from the perspective of California and Federal is different.
Not allowing SALT deduction from federal is a big issue if there are income elements that are taxable in California but are not taxable in federal.
If the income is the same for state and federal, and no mortgage, should have tax savings.
If the income for state is higher than federal, even without mortgage, would have tax increase.
About AMT, they have increased the phaseout threshold to 1 million (for married) . AMT exemption increased to 109,400. Since the phaseout threshold increased to 1 million, amt does not kick in for most till their income hits 1 million.
Also, there is no marriage penalty in tax brackets. That is a huge win for dual income households. I redid taxes foe 2016 using new rules and my taxes go down by 10k.
I am not sure why my calc is different from yours.
This family still saves $1,000 after reform.
Would you share your calculation?
Updated based on new tax bracket.
Not much big difference in trend.
Now that we are in real estate forum, most of us are probably interested in the impact of tax reform in BA housing market.
My prediction based on above table is no or positive impact on BA housing market.
income range “$300,000 - $700,000” families will see tax reduction or no change.
I believe these are most common income groups in BA home buyers.
However, after seeing this table, I am more concerned about deficit.
I am not sure how medicare would look like by the time I retire…
Well, at least the rich guys above 800k are paying more taxes. Woohoo!
So this tax is good for middle class and bad for upper class? No tax paying people are not tax payers, no impact at all.
While I’m not supportive of the GOP bill because I think it disproportionately helps the wealthy, I suspect many bay area home owners (particularly those with incomes > 250k) will be pleasantly surprised by their tax bill in 2018.
I’ve been following the bill as it came through the house and senate, calculating the effect on our family’s income tax liability every step of the way. For 2017 we’ll be paying ~90k in federal income tax on an AGI of ~400k. AMT is responsible for about 8k of the bill.
Under the revised bill, our liability is reduced by ~16,000 largely due to the increased threshold for AMT and the higher phaseout for child tax credits. 2018 tax liability = $73,344
This tax reform is about income tax. I never heard anything about Medicare tax reduction, did I miss anything here?
That is not necessarily true.
As I said in my previous posting, my table (AMT Vs tax_reform) is only applicable to people who pays AMT.
For income group over $700,000, AMT is usually smaller than regular tax due to high tax bracket.
A simple example is a married couple with no kids who deduct $60,000 in state, local and real estate taxes. Their AMT Sweet Spot stretches from incomes of $447,800 to $680,400. At the bottom of the Sweet Spot their tax bill is $121,884. At the top it is $187,012. Across this Sweet Spot where $232,600 of income is taxed at 28%, their tax bill went up only $65,128.
Thus, I guess they will also see tax reduction.
I use buying house number, his last number is $600k instead of $650k. Haven’t checked the web yet.
Still trying to figure why the actual fed tax I paid is so much lower than that computed by the site. Now eating dim sum after watching Star Wars😀 need to exam turbo tax computation carefully.
Mine was only off by $200. Not bad.
haha, you eat dim sum, and I eat sashimi.
For BA RE price, the impact is complicated. Most homebuyers will have a tax cut and will have more after tax income to spend. However, the limitation on property tax deduction and mortgage interest deduction makes homeownership a little less attractive
Are you talking about medical deduction? Here is what WSJ gives
• Current: Itemized deduction for expenses above 10% of income
• Proposed: Reduces that income percentage to 7.5% for all in 2017 and 2018