Shocker, MD Income taxes to increase

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Under the proposal, the state would establish two new tax brackets. Individual earnings beyond $500,000 would be taxed at 6.25% and earnings above $1 million would be taxed at 6.5%. The state would also add a 1% surcharge on capital gains taxes for the next four years.

The interesting thing about capital gains is it generally applies when you sell something, so you can time when you do that. Looks like I'll be holding off on some transactions until 4 years from now. Lukcily I got a bunch done in 2024 anticipating tax uncertainty is 2025.

Yes, I had many tax clients that strategically time the sale of their business or stocks after changing residence from MD to VA. This is very common practice and it’s perfectly legal to do.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Under the proposal, the state would establish two new tax brackets. Individual earnings beyond $500,000 would be taxed at 6.25% and earnings above $1 million would be taxed at 6.5%. The state would also add a 1% surcharge on capital gains taxes for the next four years.

The interesting thing about capital gains is it generally applies when you sell something, so you can time when you do that. Looks like I'll be holding off on some transactions until 4 years from now. Lukcily I got a bunch done in 2024 anticipating tax uncertainty is 2025.

Yes, I had many tax clients that strategically time the sale of their business or stocks after changing residence from MD to VA. This is very common practice and it’s perfectly legal to do.

If you’re gonna be strategic, Virginia wouldn’t be the place to do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Under the proposal, the state would establish two new tax brackets. Individual earnings beyond $500,000 would be taxed at 6.25% and earnings above $1 million would be taxed at 6.5%. The state would also add a 1% surcharge on capital gains taxes for the next four years.

The interesting thing about capital gains is it generally applies when you sell something, so you can time when you do that. Looks like I'll be holding off on some transactions until 4 years from now. Lukcily I got a bunch done in 2024 anticipating tax uncertainty is 2025.

Yes, I had many tax clients that strategically time the sale of their business or stocks after changing residence from MD to VA. This is very common practice and it’s perfectly legal to do.

I am selling my business in 2027 and moving to VA..then I'll move back once i am retired and can artificially control my income

[Anonymous]

Wow the Estate Tax exemption drops from $5mln to $2mln. Start putting your assets into a trust now!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Under the proposal, the state would establish two new tax brackets. Individual earnings beyond $500,000 would be taxed at 6.25% and earnings above $1 million would be taxed at 6.5%. The state would also add a 1% surcharge on capital gains taxes for the next four years.

The interesting thing about capital gains is it generally applies when you sell something, so you can time when you do that. Looks like I'll be holding off on some transactions until 4 years from now. Lukcily I got a bunch done in 2024 anticipating tax uncertainty is 2025.

Yes, I had many tax clients that strategically time the sale of their business or stocks after changing residence from MD to VA. This is very common practice and it’s perfectly legal to do.

I am selling my business in 2027 and moving to VA..then I'll move back once i am retired and can artificially control my income

That might be legally dubious depending on the circumstances. You need to intend for the move to be permanent and you need to pass the “teddy bear” test. If you don’t do this there is a high probability you will fail an MD residency audit.

[Anonymous]

Come on over to Virginia.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Under the proposal, the state would establish two new tax brackets. Individual earnings beyond $500,000 would be taxed at 6.25% and earnings above $1 million would be taxed at 6.5%. The state would also add a 1% surcharge on capital gains taxes for the next four years.

The interesting thing about capital gains is it generally applies when you sell something, so you can time when you do that. Looks like I'll be holding off on some transactions until 4 years from now. Lukcily I got a bunch done in 2024 anticipating tax uncertainty is 2025.

Yes, I had many tax clients that strategically time the sale of their business or stocks after changing residence from MD to VA. This is very common practice and it’s perfectly legal to do.

I am selling my business in 2027 and moving to VA..then I'll move back once i am retired and can artificially control my income

That might be legally dubious depending on the circumstances. You need to intend for the move to be permanent and you need to pass the “teddy bear” test. If you don’t do this there is a high probability you will fail an MD residency audit.

I thikn it's fair to say that someone selling a business for millions will seek advice of a CPA and lawyer on such a move.

I'm in a similar situation. What we plan to do is move our primary residence to Delaware as soon as our youngest is finished with high school, then start the process of sale of my business.

[Anonymous]

Anonymous wrote:This only affects those earning $500K+?

I really don't care, do u?

No. 175k+ for individuals. Which is fairly common around the DMV. It's clearly stated in the governor's announcement that 18% of Maryland households will be paying more taxes. And it looks like it's significant, not minor, increases.

What will happen is that the genuinely rich will simply reallocate their residency to another state and nothing will change for them, while the working stiff UMCs get slammed. Again.

Although I agree with the notion that you get what you voted for. If you voted for Moore, likable as he is, you had to figure something like this was coming up.

[Anonymous]

Anonymous wrote:
Although I agree with the notion that you get what you voted for. If you voted for Moore, likable as he is, you had to figure something like this was coming up.

I thought they'd just nix Blueprint for Maryland since taht is a massive cost. Spending per student is already up across the board, and in fact spending per student is higher in the school systems with the worst performance (Baltimore City), so it shows that throwing money at the problem doesn't necessarily solve it. Other counties in MD get better outcomes with lower spending per student.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This only affects those earning $500K+?

I really don't care, do u?

No. 175k+ for individuals. Which is fairly common around the DMV. It's clearly stated in the governor's announcement that 18% of Maryland households will be paying more taxes. And it looks like it's significant, not minor, increases.

What will happen is that the genuinely rich will simply reallocate their residency to another state and nothing will change for them, while the working stiff UMCs get slammed. Again.

Although I agree with the notion that you get what you voted for. If you voted for Moore, likable as he is, you had to figure something like this was coming up.

I don't see that in the budget or the linked article. Can you link these details?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP is probably someone who wept for the UHC CEO getting shot

OP here, while I didn't weep, it is 100% wrong and I hope Luigi is locked up for life. You people are nuts. The wealthy pay most of the taxes. Why piss us off when we can easily leave?

Maybe turn that question around and ask yourself, "Why enrich yourself at the expense of the majority of the population?"

you do realize we still pay more state income taxes that 99% of the MD population right? How and i enriching myself at the expense of the majority when the taxes I pay to MD are more than average salaries in MD?

Such a weird statement

You pay more income taxes than 99% of the MD population because you have more income than 99% of the MD population, no? That's how a progressive income tax works.

[Anonymous]

Shocker Hogan set up a mess
Shocker Hogan never brought industry here he booted everything

He’s coming back in 2028 if we vote at all which is doubtful.

No worries Repukes you will have your ted MD
No more public schools religious vouchers only
Welfare from other blue states
Child abuse ramps up with zero consequences

Laws lol none

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Although I agree with the notion that you get what you voted for. If you voted for Moore, likable as he is, you had to figure something like this was coming up.

I thought they'd just nix Blueprint for Maryland since taht is a massive cost. Spending per student is already up across the board, and in fact spending per student is higher in the school systems with the worst performance (Baltimore City), so it shows that throwing money at the problem doesn't necessarily solve it. Other counties in MD get better outcomes with lower spending per student.

Apparently the blueprint doesn't account for much each year and nixing it wouldn't do much. A lot of the spending is for things like Social security payments, Medicare and other stuff

[Anonymous]

Anonymous wrote:Shocker Hogan set up a mess
Shocker Hogan never brought industry here he booted everything

He’s coming back in 2028 if we vote at all which is doubtful.

No worries Repukes you will have your ted MD
No more public schools religious vouchers only
Welfare from other blue states
Child abuse ramps up with zero consequences

Laws lol none

It's crazy how people want to gloss over the fact the state only had a budget surplus during the COVID years thanks in part two all the federal stimulus pouring in

But nobody talks about that 😎

[Anonymous]

Anonymous wrote:Wow the Estate Tax exemption drops from $5mln to $2mln. Start putting your assets into a trust now!

That's one way to get the boomers in MoCo and Howard to sell. Especially with PA and VA being the two bordering states.