The increase in SALT caps is so ridiculous

[Anonymous]

sorry for the chat-gpt, but guess who put the restriction in the first place. It's almost as if the OP is disingenuous

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ironically Democrats are going to profit more from the BBB than Republicans especially in a state like NY where people can pay $30k+ in property taxes alone in counties like Westchester.

And this means in those states home prices are likely not going down because every prospective buyers will be told about the SALT benefit.

I hope when Dems come back in power they let it expire. Will they lol? Sh the irony ....

It's not a true benefit...you still pay the higher tax and deduct only a small portion. It was done to punish people in blue states who pay more taxes typically.

It's this exactly, but too many red states were impacted because 10k was far too low

[Anonymous]

Anonymous wrote:The only solution to the nation's money problems is to print more money and inflate our way out of it.

I agree with this pp from early in the thread. I would suggest buying a house if you don't already live in one since home prices will have to keep up with inflation even if the real price of it is unchanged (when inflation adjusted). Inflation hurts people that don't own property the most because their rents will increase to keep up with it but if you have a fixed rate loan, your loan becomes progressively cheaper with the same payment because you're paying back property with money that's worth less all while your house price skyrockets in total dollars to keep up with inflation. At least that's what I think we'll have to see. I can't imagine a scenario where our country is willing to raise taxes enough or cutting spending enough to pay it down. The only other option is inflating out of it. Whether that's through a Congressional action, a federal reserve decision, or the President ordering a platinum coin minted worth 40 trillion dollars? I couldn't say but eventually the current debt spiral will become unsustainable and there's no political will that gets us out of it as far as I can tell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did our taxes. The increase in SALT now means it is far better for us to itemize than do standard deduction. Before this change, we would only get back about $400 per year total, because we were pretty on par for paying the exact amount of taxes as we should. Now with the SALT cap increase, we are getting a massive return more than $6000.

You know what I’ll do with this money? Probably just stuff it in the bank account. Not really going to stimulate the economy with it. The national debt is exploding, yet I have no idea why the govt wants to give well off DINKS like us huge tax returns. We were drinking a $280 bottle of wine the other night for a weekday dinner. I really don’t need this money and rather the country remained solvent.

Your return is the form you file.

You meant to say “refund.”

If you are go to opine on tax policy it helps to use the proper nomenclature.

Imagine being this annoyingly pedantic.

I'm sure they love you at parties.

This isn’t being pedantic. OP is getting basic terminology wrong and sounds like an idiot.

The only question for communication is "Did you understand?" We all understood. That is why it comes off as pedantic. Pointing out such things seems anti-social when done judgmentally rather than in an informative or educational way.

No, actually, I didn’t understand. I had to read it twice to figure it out.

I was nonplussed about it, in fact.

[Anonymous]

It is a big boom for retirees over 65 in high tax areas such as MoCo, Nassau County NY, NYC, Bergan County NJ, Chicago IL and California.

It also included added deduction over 65 and folks who actually did save in their 401ks were getting killed on taxes on RMDs.

It also now allows property taxes to be deducted again with higher limit. Old folks often had a primary house and a little beach condo or second home both mortgage free and could not deduct property taxes. Their RMDs, interest income and SS payments already made them hit 10K in state income.

[Anonymous]

Anonymous wrote:It is a big boom for retirees over 65 in high tax areas such as MoCo, Nassau County NY, NYC, Bergan County NJ, Chicago IL and California.

It also included added deduction over 65 and folks who actually did save in their 401ks were getting killed on taxes on RMDs.

It also now allows property taxes to be deducted again with higher limit. Old folks often had a primary house and a little beach condo or second home both mortgage free and could not deduct property taxes. Their RMDs, interest income and SS payments already made them hit 10K in state income.

This is exactly why the country is going to ruination and will be insolvent soon. Why are we subsidizing peoples' ownership over 2nd and 3rd homes? Student loan forgiveness is outrageous, yet they want the entire country to help foot the tax bill of individuals' personal properties? Ridiculous. There shouldn't be any SALT deductions, nor mortgage interest deductions. Pay your own bills.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did our taxes. The increase in SALT now means it is far better for us to itemize than do standard deduction. Before this change, we would only get back about $400 per year total, because we were pretty on par for paying the exact amount of taxes as we should. Now with the SALT cap increase, we are getting a massive return more than $6000.

You know what I’ll do with this money? Probably just stuff it in the bank account. Not really going to stimulate the economy with it. The national debt is exploding, yet I have no idea why the govt wants to give well off DINKS like us huge tax returns. We were drinking a $280 bottle of wine the other night for a weekday dinner. I really don’t need this money and rather the country remained solvent.

Your return is the form you file.

You meant to say “refund.”

If you are go to opine on tax policy it helps to use the proper nomenclature.

Imagine being this annoyingly pedantic.

I'm sure they love you at parties.

This post is not the least bit pedantic. These two words have very different meanings in terms of taxes- not a minor difference at all.

Lots of people make this error at this time of the year, but using the right word for what you mean is important.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It is a big boom for retirees over 65 in high tax areas such as MoCo, Nassau County NY, NYC, Bergan County NJ, Chicago IL and California.

It also included added deduction over 65 and folks who actually did save in their 401ks were getting killed on taxes on RMDs.

It also now allows property taxes to be deducted again with higher limit. Old folks often had a primary house and a little beach condo or second home both mortgage free and could not deduct property taxes. Their RMDs, interest income and SS payments already made them hit 10K in state income.

This is exactly why the country is going to ruination and will be insolvent soon. Why are we subsidizing peoples' ownership over 2nd and 3rd homes? Student loan forgiveness is outrageous, yet they want the entire country to help foot the tax bill of individuals' personal properties? Ridiculous. There shouldn't be any SALT deductions, nor mortgage interest deductions. Pay your own bills.

Right now you have the 40K cap on SALT and 750K cap on mortgage loans. Could be one home or two homes what the difference with cap same hard stop on write off.

most high income people get zero deduction on property taxes as state income tax already hits 40K. NYC is like 8 percent income tax and when I worked big 4 the Partners all made 750K to 800K. They already hit 40K so their house in Garden City and Southampton no write off for property tax.

[Anonymous]

Saving is investing. You’re helping the economy grow because somebody can use that money and you get a return

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did our taxes. The increase in SALT now means it is far better for us to itemize than do standard deduction. Before this change, we would only get back about $400 per year total, because we were pretty on par for paying the exact amount of taxes as we should. Now with the SALT cap increase, we are getting a massive return more than $6000.

You know what I’ll do with this money? Probably just stuff it in the bank account. Not really going to stimulate the economy with it. The national debt is exploding, yet I have no idea why the govt wants to give well off DINKS like us huge tax returns. We were drinking a $280 bottle of wine the other night for a weekday dinner. I really don’t need this money and rather the country remained solvent.

Your return is the form you file.

You meant to say “refund.”

If you are go to opine on tax policy it helps to use the proper nomenclature.

“If you are go to opine…”. ?????

It's important to learn how to write in correct English.

You're making yourself look bad.

If you want to share your thoughts on proper naming, you really need to know how to write in English using the right grammar and punctuation.

Bless your heart, you can’t tell the difference between a typo on social media and someone using incorrect terminology. You’re *that* kind of special idiot, aren’t you, short bus?

Wow, what is wrong with you? Are you this awful in real life or just emboldened by the anonymity of the internet?

[Anonymous]

The biggest winners will be in NY with their outrageous state and local taxes.

[Anonymous]

Anonymous wrote:The biggest winners will be in NY with their outrageous state and local taxes.

Hey we hit the cap in PA due to our wonderful Philly wage tax that's almost the same as our state taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is a big boom for retirees over 65 in high tax areas such as MoCo, Nassau County NY, NYC, Bergan County NJ, Chicago IL and California.

It also included added deduction over 65 and folks who actually did save in their 401ks were getting killed on taxes on RMDs.

It also now allows property taxes to be deducted again with higher limit. Old folks often had a primary house and a little beach condo or second home both mortgage free and could not deduct property taxes. Their RMDs, interest income and SS payments already made them hit 10K in state income.

This is exactly why the country is going to ruination and will be insolvent soon. Why are we subsidizing peoples' ownership over 2nd and 3rd homes? Student loan forgiveness is outrageous, yet they want the entire country to help foot the tax bill of individuals' personal properties? Ridiculous. There shouldn't be any SALT deductions, nor mortgage interest deductions. Pay your own bills.

Right now you have the 40K cap on SALT and 750K cap on mortgage loans. Could be one home or two homes what the difference with cap same hard stop on write off.

most high income people get zero deduction on property taxes as state income tax already hits 40K. NYC is like 8 percent income tax and when I worked big 4 the Partners all made 750K to 800K. They already hit 40K so their house in Garden City and Southampton no write off for property tax.

Remember that there is a phase out starting at $500k for the additional SALT deduction. I believe at $600k income, the deduction is down to the $10,000 level. So high earners are not getting any of the benefit of the SALT change. I live in NY state now but make over $600,000 HHI so I will see no benefit. I am not complaining, just noting this since people seem to be forgetting the phase out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is a big boom for retirees over 65 in high tax areas such as MoCo, Nassau County NY, NYC, Bergan County NJ, Chicago IL and California.

It also included added deduction over 65 and folks who actually did save in their 401ks were getting killed on taxes on RMDs.

It also now allows property taxes to be deducted again with higher limit. Old folks often had a primary house and a little beach condo or second home both mortgage free and could not deduct property taxes. Their RMDs, interest income and SS payments already made them hit 10K in state income.

This is exactly why the country is going to ruination and will be insolvent soon. Why are we subsidizing peoples' ownership over 2nd and 3rd homes? Student loan forgiveness is outrageous, yet they want the entire country to help foot the tax bill of individuals' personal properties? Ridiculous. There shouldn't be any SALT deductions, nor mortgage interest deductions. Pay your own bills.

Right now you have the 40K cap on SALT and 750K cap on mortgage loans. Could be one home or two homes what the difference with cap same hard stop on write off.

most high income people get zero deduction on property taxes as state income tax already hits 40K. NYC is like 8 percent income tax and when I worked big 4 the Partners all made 750K to 800K. They already hit 40K so their house in Garden City and Southampton no write off for property tax.

Remember that there is a phase out starting at $500k for the additional SALT deduction. I believe at $600k income, the deduction is down to the $10,000 level. So high earners are not getting any of the benefit of the SALT change. I live in NY state now but make over $600,000 HHI so I will see no benefit. I am not complaining, just noting this since people seem to be forgetting the phase out.

+1. We get most of it this year (ended up around $550K) but with promos we’re at $900K for 2026 so won’t get a penny next year. I found it funny our friends in $2-3M houses with fancy cars and private schools were all so excited to get SALT back. I was like ah so you all are subsidized by family $ after all!

[Anonymous]

Anonymous wrote:It is a big boom for retirees over 65 in high tax areas such as MoCo, Nassau County NY, NYC, Bergan County NJ, Chicago IL and California.

It also included added deduction over 65 and folks who actually did save in their 401ks were getting killed on taxes on RMDs.

It also now allows property taxes to be deducted again with higher limit. Old folks often had a primary house and a little beach condo or second home both mortgage free and could not deduct property taxes. Their RMDs, interest income and SS payments already made them hit 10K in state income.

Agree. I don’t get the boost now because of the income phase out for high earners, but when I retire in a couple years and my income drops, I will get some benefit from it. My RE taxes for 2 houses are over $20k, and I will still have state taxes on my retirement income and investments.