four
5,087 posts
msg #148626
- Ignore four |
7/21/2019 10:53:59 PM
https://www.cnbc.com/2019/07/18/rich-morgan-stanley-clients-withdrew-a-surprising-amount-to-pay-taxes.html
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karennma
8,057 posts
msg #148633
- Ignore karennma
modified |
7/22/2019 7:39:40 AM
Can someone explain this to me???
This makes NO sense!
Clearly, I don't understand the meaning of "cap".
"The likely culprit: Under the Trump administration’s 2017 tax reform, the deduction for state income, sales and property taxes was capped at $10,000. "
“Some of these individuals have homes with $50,000 or $100,000 in tax bills for one home, and they have multiple homes, so they owed much more in taxes,” said John Straus, managing partner at investment adviser Private Wealth Partners in Connecticut, another high-tax state. “People were most definitely surprised at the impact of the new tax bill.”
If a $10K "cap" was put on property taxes, how could their property taxes go up?
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Cheese
1,374 posts
msg #148636
- Ignore Cheese |
7/22/2019 10:37:32 AM
@karennma,
You may find some info in this article, for more in-depth discussions with your tax accountant or planner.
https://www.creditkarma.com/tax/i/property-tax-deduction-cap/
How might the cap on the property tax deduction affect your taxes?
Aug 24, 2018
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nibor100
1,048 posts
msg #148639
- Ignore nibor100 |
7/22/2019 11:02:41 AM
The cap was on the federal income tax total real estate tax deduction you could claim on your taxes, previously there was no limit on how much real estate taxes that you paid that you could deduct. '
Now if you pay more than $10, 000 in real estate taxes in a year you can't deduct the rest so your total income tax bill goes up.
As far as I know there is no $ limit in any state on how much real estate tax they can levy on your properties. Its one of the state's biggest sources of income...
Ed S.
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karennma
8,057 posts
msg #148651
- Ignore karennma |
7/22/2019 3:51:42 PM
"Now if you pay more than $10, 000 in real estate taxes in a year you can't deduct the rest so your total income tax bill goes up."
@ Nibor - Thanks for the simple clarification.
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