New Tax Plan Calculator - will you pay more or less?

[moosejaa]

i'm not very good at it, but people still pay me to do it. anybody with questions is welcomed to pm me.



no, there isn't. and there's not much to do. prepaid state and local income taxes won't be deductible against 2017 income. a client told us today that her local county tax collector would not accept a 2018 prepayment of property tax. if you itemize and have unreimbursed employee business expenses, you could accelerate some of those if you're not already in the amt. same for accelerating payments to financial advisors or estate attorneys. high income earners can't really accelerate itemized deductions into 2017 because pease is already limiting them significantly. that goes away next year, but the top tax rate will be a little lower.

How will this be with high tax states? Not many higher than NY. Should I be concerned?

Sent from my SM-G900T using Tapatalk

 

[McLovin]

How will this be with high tax states? Not many higher than NY. Should I be concerned?

Sent from my SM-G900T using Tapatalk

tough to say without knowing your specifics.

most of my clients in high tax states only receive partial benefit for their state tax deductions due to amt add-backs, so it won't be a one-for-one loss of deduction since it may be only partially deductible or not at all.

if you're receiving the full benefit of salt, and you have kids, your tax likely won't change much assuming you are a salaried employee. i say that because what you pick up in child tax credit is being offset by losing dependency exemptions and possibly taking the standard deduction instead of itemizing.

if you have specific questions, feel free to pm me.

 

[Mulligan9111]

tough to say without knowing your specifics.

most of my clients in high tax states only receive partial benefit for their state tax deductions due to amt add-backs, so it won't be a one-for-one loss of deduction since it may be only partially deductible or not at all.

if you're receiving the full benefit of salt, and you have kids, your tax likely won't change much assuming you are a salaried employee. i say that because what you pick up in child tax credit is being offset by losing dependency exemptions and possibly taking the standard deduction instead of itemizing.

if you have specific questions, feel free to pm me.

Are you seeing that the really high income earners (those who make enough that they are no longer in AMT) are the ones losing out the most with the change to SALT in the high tax states? That'd be who I would think would be hurt the most by change, since they were getting the full benefit of their state income tax.

Although I guess they were getting phased out of their itemized deductions at that point. There were a couple years recently they did away with the phase out of itemized deductions, I just forget which years.

 

[tahoebum]

Plus let's be honest there's not a whole lot of time to "change" anything at this point for the year anyhow

We just prepaid our second installment of property taxes on 2 properties after getting an email from our accountant today. We can deduct them this year but not next. Her email saved us a lot on our tax bill!

 

[tequila4kapp]

We just prepaid our second installment of property taxes on 2 properties after getting an email from our accountant today. We can deduct them this year but not next. Her email saved us a lot on our tax bill!

Interesting. I could have sworn I read that pre-paying was explicitly disallowed.

 

[dhartmann34]

Interesting. I could have sworn I read that pre-paying was explicitly disallowed.

Prepaying income taxes is not allowed.... With good reason since the income has not been earned yet. Real estate taxes are allowed... As long as your county is accepting them.... Which makes sense to me since they are for the 2017 tax year, even though they would normally be paid in 2018.

Sent from my Pixel XL using Tapatalk

 

[McLovin]

Are you seeing that the really high income earners (those who make enough that they are no longer in AMT) are the ones losing out the most with the change to SALT in the high tax states? That'd be who I would think would be hurt the most by change, since they were getting the full benefit of their state income tax.

Although I guess they were getting phased out of their itemized deductions at that point. There were a couple years recently they did away with the phase out of itemized deductions, I just forget which years.

you’re correct on the second part for those with about $1 million agi and up. they were losing 80% of the itemized with the pease phaseouts anyway.

honestly we are still digesting this thing. our research software has generated some client letters that go into detail. if anybody wants a copy, pm me and i’ll send it to you.


Sent from my iPhone using Tapatalk

 

[e1iterate]

I’ll save


Sent from my iPhone using Tapatalk Pro

 

[tequila4kapp]

Bonus came in today. Previously my take home has been less than 50% on the bonus. This time it was 58%. Definitely not crumbs.

 

[PJSprog]

My take home pay increased by $28/week when it kicked in last month.

 

[tequila4kapp]

My employer announced an @ 8 figure reinvestment of money saved by the tax plan - unplanned for bonuses to all employees and just more than double that in new technology investments.

 

[JB]

My employer announced an @ 8 figure reinvestment of money saved by the tax plan - unplanned for bonuses to all employees and just more than double that in new technology investments.

That’s the continued trend. It appears to be working like a lot of things and I’m hopeful this country together can unite around more financial freedom.

 

[Iceman!]

My employer announced an @ 8 figure reinvestment of money saved by the tax plan - unplanned for bonuses to all employees and just more than double that in new technology investments.

Our company did the same thing - Reinvest some of the money and $250 bonuses for employees under a certain "Pay Grade"

 

[McLovin]

i continue to see across-the-board savings for every one of my clients. granted, i'm a cpa in florida so we don't have a ton of state income tax issues.

where i hedge a bit is in the long-term viability of something like this. i want to see more spending cuts and/or other privatization happening. it doesn't seem sustainable to shrink the tax base and keep spending more.

 

[JohnSinVA]

i continue to see across-the-board savings for every one of my clients. granted, i'm a cpa in florida so we don't have a ton of state income tax issues.

where i hedge a bit is in the long-term viability of something like this. i want to see more spending cuts and/or other privatization happening. it doesn't seem sustainable to shrink the tax base and keep spending more.

I read that corporate tax receipts are down but individual receipts are at record highs. I didn’t see whether total receipts were up or down, however.

 

[McLovin]

I read that corporate tax receipts are down but individual receipts are at record highs. I didn’t see whether total receipts were up or down, however.

whatever data you’re seeing is for the old law. when i’m talking about savings i’m talking about running 2018 projections under the new law.


Sent from my iPhone using Tapatalk