re: Ok “Libtards”. This looks like a decent plan to me. Problems?

Yeah, I didn’t even realize there would be a grandfather clause on the $500k threshold.

So it will have zero effect on me or my immediate family here in CA.

Sucks for the RE market out here though. Real Estate Correction on its way.

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I understand. But I read a few knee-jerk reactions based solely on the source of this reform. I just want honest Left’s opinions.

Is this a big deal? Doesn’t seem like anything bad or anything to fight like a stupid-arse wall or repeal-shite. It is ‘sound’.

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I won't argue it is not "sound" in a lot of ways but as I stated above I will take a decent hit personally if the proposal goes through as written. But the fights will happen and they are real for some people, the loss of SALT deductions and changes to the mortgage deduction are going to hit some people really hard.

The big issue is will the change to the corporate taxes have the intended impact. The personal taxes are small potatoes compared to the corporate change and it could produce a HUGE revenue hole unless we have accelerated economic growth, which is possible but it is also possible the economy will react to something unforeseen. Again this is why I say cut spending first so you don't have to worry as much about tax revenue tanking.

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Yeah, I didn’t even realize there would be a grandfather clause on the $500k threshold.

So it will have zero effect on me or my immediate family here in CA.

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How will the loss of SALT deductions impact you and yours?

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The drop in corporate tax rate is going to be a huge boon to the economy, as well the offer to repatriate profits. Combined with deregulation efforts and the us looks like a much more attractive place to do business

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This is the key part, it makes America competitive again to corporations.

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How will the loss of SALT deductions impact you and yours?

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It won’t. We don’t take that deduction. That’s mostly used by high income folks who take itemized deductions.

I was concerned that they would completely kill the property tax/mortgage interest deduction.

They’ve kept it, and my parents will be under the grandfather clause.

This is a pet peeve, but Trump campaigned against the "carried interest" loophole which allows investment managers to receive their management fee as a capital gain rather than ordinary income.

I know the tax plan is not final, but I haven't heard anything about this in quite a while.

I also know this doesn't affect many people, but there is no justification for this tax perk for hedge fund managers.

This can also apply in certain circumstances to managers of real estate ventures.

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I was concerned that they would completely kill the property tax/mortgage interest deduction.

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Note that property tax is part of SALT and caps property tax deductions at 10K. But if your state income tax and property tax is low and you didn't itemize then it is likely not an issue for you.

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Note that property tax is part of SALT and caps property tax deductions at 10K.

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Even if the purchase price is grandfathered?

It doesn’t really matter. None of my immediate family pay more than $10k in property tax, nor will we be buying a home anytime soon.

California is protected by Prop 13, which froze property taxes at 1% of purchase or tax appraised value.

So, it cannot go above 1%. New home construction gets around this with Mello Roos fees. Which is in essence a tax for new infrastructure in new areas.

They will assess homes at a higher or lower rate, but it seems to be random. For example, I paid $235k and my house is “valued” at $485k. I’m still paying property tax on the $235k purchase price.

Theoretically I could get a letter in the mail saying that my home is now taxed based on the “value”, which at 1% is still well below the $10k threshold.

Did someone hack your account?