Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

As it should

Not necessarily - it still encourages wealthy people to move to Florida or Texas or other no/low tax states.

wealthy people don't want to live in texas or florida.

If someone moves from a livable state to Texas or Florida simply to save a few thousand dollars on taxes they'll get exactly what they deserve.

It's the same as when I see people here saying they're living in VA because of the taxes. Like if you want to live in VA because you want to live in VA go for it, but if you actually prefer to live in DC and you're living somewhere you don't really want to be to save a piddly few percent on taxes that's just sad and pathetic. Hope that long commute from your soulless suburb is really worth the extra few bucks.

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

This. Idk who this is actually helping aside from the narrow $400-500K range who is overextended with their mortgage.

We’re at $700K HHI in VA (and own a house with a $700K mortgage give or take) and don’t get over the threshold where it makes sense to itemize - the standard deduction is still larger for us. Plus SALT phases out starting at $600K anyways back down to $10K.

Where does the overextended mortgage come into play? This helps people who pay state and local income taxes even if they don't have property taxes. We make ~$350k and pay $30k in DC taxes alone.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

This. Idk who this is actually helping aside from the narrow $400-500K range who is overextended with their mortgage.

We’re at $700K HHI in VA (and own a house with a $700K mortgage give or take) and don’t get over the threshold where it makes sense to itemize - the standard deduction is still larger for us. Plus SALT phases out starting at $600K anyways back down to $10K.

Anonymous wrote:

Anonymous wrote:2 problems moving to FL or TX:

1. You actually have to live there, which for most normal people is barf, and
2. Have you seen real estate taxes?? You get re-assessed both places upon sale and the rates are INSANE. Sure from NY or NJ it makes sense but not really from VA.

FYA FL is likely getting rid of property taxes this legislative session - I’ll believe it when I see it but there’s a big organized push

Hm, what can go wrong. No property or income tax. How do you support public education from K to college? How do you support public safety and health care, the basics. I'm curious where the money comes from.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

Not all homeowners are filing jointly. I make $200k and was easily hitting the itemization level even with the cap. My property taxes alone are $10k, and I don’t even own a particularly expensive home for my area.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

This is not a bad thing. Simplification of taxes was a good outcome.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Anonymous wrote:2 problems moving to FL or TX:

1. You actually have to live there, which for most normal people is barf, and
2. Have you seen real estate taxes?? You get re-assessed both places upon sale and the rates are INSANE. Sure from NY or NJ it makes sense but not really from VA.

the upside is that the home prices in FL and TX are dropping by a lot.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

As it should

Not necessarily - it still encourages wealthy people to move to Florida or Texas or other no/low tax states.

wealthy people don't want to live in texas or florida.

Based on typical late‑2025 inventory patterns:

- Washington DC metro: a few dozen homes for sale with asking prices above $5 million (concentrated in Northwest DC, close‑in Montgomery County, and Northern Virginia).

- Florida statewide: low hundreds of homes for sale above $10 million (concentrated in Palm Beach County, Miami‑Dade, Broward, Collier/Naples, and the Keys). Large public portals list many ultra‑luxury properties but don’t provide a precise statewide count in one view.

Right. As I was saying, the super wealthy don't want to live in Florida. That's why there is so much inventory.

A lot of the expensive properties are purchased by wealthy foreign buyers, too, particularly by Trump's Russian friends.

Anonymous wrote:2 problems moving to FL or TX:

1. You actually have to live there, which for most normal people is barf, and
2. Have you seen real estate taxes?? You get re-assessed both places upon sale and the rates are INSANE. Sure from NY or NJ it makes sense but not really from VA.

FYA FL is likely getting rid of property taxes this legislative session - I’ll believe it when I see it but there’s a big organized push

Anonymous wrote:2 problems moving to FL or TX:

1. You actually have to live there, which for most normal people is barf, and
2. Have you seen real estate taxes?? You get re-assessed both places upon sale and the rates are INSANE. Sure from NY or NJ it makes sense but not really from VA.

Taxes in VA at least are not lower than FL or TX. VA taxes are not a deal.

2 problems moving to FL or TX:

1. You actually have to live there, which for most normal people is barf, and
2. Have you seen real estate taxes?? You get re-assessed both places upon sale and the rates are INSANE. Sure from NY or NJ it makes sense but not really from VA.

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

I posted much earlier in the thread and it still stands - feels like it was carved out specifically for my Dr. wife. I'll add one more reason why it's perfect - city of PHL wage tax (3.7%).

Yes, this...above.