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More real estate doom and gloom

Toshi

Harbinger of Doom
Oct 23, 2001
25,836
1,650
The Lady of the Lake, her arm clad in the purest shimmering silmite
held aloft a great moustache from the bosom of the water, signifying by divine
providence that JBP, was to wear said moustache. THAT is why he is your
king!
I expect more snark and less conventional Monty Python from you
 

Westy

the teste
Nov 22, 2002
36,257
2,989
Sleazattle
:stupid:

My real estate deductions got capped as well, but the other changes + no more AMT made my taxes about the same if not a hair smaller, IIRC.
My SALT got capped but only because I bought a car. Wa has no income tax but high sales tax. Would have been right at the cap otherwise.
 

Toshi

Harbinger of Doom
Oct 23, 2001
25,836
1,650
My SALT capped even with prepaying 2018 property taxes in 2017. Even with the cap I had a lower effective rate by a few points.
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
13,931
1,307
Colorado
This is a shady as fuck investment strategy.

Process:
1. Buyer puts down 20% on house > Loan issuer still owns the house, don't forget that
2. Buyer pays mtge for a few years > Income stream to loan issuer
3. Buyer goes into default, forcing short sale or foreclosure - losing all earned principal > Loan issuer now takes back the property to sell into the market.
4. Loan issuer is instantly up for multiple reasons:
-1. If property values are up, sell house for gain.
-2. They have been making money on interest payments the whole time
- 3. If values are down, rent the property that was "purchased" at a 20% + any paid principal discount rate.
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
13,931
1,307
Colorado
Headline what?!

Any house monkeys get burned by the new tax laws? I know a few people who capped out on taxes between state income and real estate, here in CA.
Capped but only barely with prepaying property taxes. Total rate was effectively lower though.

My "go Trump!" Dad got thoroughly fucked something like $15k even after the lower Fed rate. He blamed the Democrats even though they all voted against the bill; said it was state tax fault that he was paying more. It's like Stockholm Syndrome...
 

mandown

Poopdeck Repost
Jun 1, 2004
13,647
1,156
Transylvania 90210
Capped but only barely with prepaying property taxes. Total rate was effectively lower though.

My "go Trump!" Dad got thoroughly fucked something like $15k even after the lower Fed rate. He blamed the Democrats even though they all voted against the bill; said it was state tax fault that he was paying more. It's like Stockholm Syndrome...
A friend told me that he and his wife made less but owed about significantly more because of various deduction and exemption changes. A fairly “middle class” married family with multiple kids.
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
13,931
1,307
Colorado
A friend told me that he and his wife made less but owed about significantly more because of various deduction and exemption changes. A fairly “middle class” married family with multiple kids.
In CA I assume?

Being in CO with 4% state income we didn't get that hit. 2019 is going to suck because we will have property taxes and the higher income. I have a feeling Toshi got it way worse than we did.
 

mandown

Poopdeck Repost
Jun 1, 2004
13,647
1,156
Transylvania 90210
In CA I assume?

Being in CO with 4% state income we didn't get that hit. 2019 is going to suck because we will have property taxes and the higher income. I have a feeling Toshi got it way worse than we did.
Indeed. He said it was primarily the exemption change that did him in.
 

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
29,210
1,752
Portland, OR
A friend told me that he and his wife made less but owed about significantly more because of various deduction and exemption changes. A fairly “middle class” married family with multiple kids.
This was us. We made about $8k less last year. We got $2200 back last year, we paid $3200 this year. Owning a home isn't as good a deal as it used to be.
 

SkaredShtles

I love NEWCASTLE and will ONLY drink NEWCASTLE!!!!
Sep 21, 2003
47,762
2,348
In a van.... down by the river
This was us. We made about $8k less last year. We got $2200 back last year, we paid $3200 this year. Owning a home isn't as good a deal as it used to be.
I've always contended that home ownership shouldn't be actively encouraged by the gummint. Neither should having kids.

You need to tell us your *TOTAL* tax bill from last year compared to this year for any of your numbers to be useful at all. Even more useful is your effective tax rate. Ours went from 16% last year to 11% this year - we made $30K less this year than last.
 
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jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
29,210
1,752
Portland, OR
I've always contended that home ownership shouldn't be actively encouraged by the gummint. Neither should having kids.

You need to tell us your *TOTAL* tax bill from last year compared to this year for any of your numbers to be useful at all. Even more useful is your effective tax rate. Ours went from 16% last year to 11% this year - we made $30K less this year than last.
I will have to look at the tax rate. Part of it was a few months of funemployment, part of it was a serious lack of deductions. The wife did the taxes, I just paid the bill.
 

SkaredShtles

I love NEWCASTLE and will ONLY drink NEWCASTLE!!!!
Sep 21, 2003
47,762
2,348
In a van.... down by the river
I will have to look at the tax rate. Part of it was a few months of funemployment, part of it was a serious lack of deductions. The wife did the taxes, I just paid the bill.
Yeah... there's been a TON of bitching from folks that "had to pay when I normally got a refund" due to their failure to adjust their withholding when the law went through. It's irritating, because often times these same people actually paid LESS than they did last year... it's just that math is hard.

:D
 

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
29,210
1,752
Portland, OR
Yeah... there's been a TON of bitching from folks that "had to pay when I normally got a refund" due to their failure to adjust their withholding when the law went through. It's irritating, because often times these same people actually paid LESS than they did last year... it's just that math is hard.

:D
I claimed 0 last year as well as the year before. I guess I could opt to just pay up front this year? Not sure how much adjusting I can do.