Tax reform and my new ZR1
12-23-2017, 12:06 PM
#1
Burning Brakes
Thread Starter
Tax reform and my new ZR1
The White House gave some of us an early Christmas present yesterday. It may not have been the new ZR1 that I wanted but at least it will alleviate some of this CPA’s uncertainty going forward. These provisions will mostly be effective on January 1, 2018, so structure your year-end planning accordingly.
By the way, nothing in this post should be construed as tax advice. It is merely an educational communication.
Here are some of the individual tax highlights:
1. The highest individual tax rate is reduced from 39.6% to 37%.
2. The maximum deduction for real estate, personal property, state,
and sales tax combined is limited to $10,000. This particularly hurts
many taxpayers in high tax states, such as California.
3. The standard deduction almost doubles, but the personal
exemptions are repealed.
4. The estate tax wasn't repealed, but the estate tax exemption was
doubled.
5. The mortgage interest deduction is allowed for new mortgages up
to $750,000 down from $1,000,000 that was allowed under
previous law.
6. The interest expense on home equity loans is no longer deductible.
Since this new act hasn't been officially named yet do you think the White House will let me call it "The CPA Full Employment Act" ?
Happy Holidays to everyone and I'll be back on track after April 15th.
1040MD
By the way, nothing in this post should be construed as tax advice. It is merely an educational communication.
Here are some of the individual tax highlights:
1. The highest individual tax rate is reduced from 39.6% to 37%.
2. The maximum deduction for real estate, personal property, state,
and sales tax combined is limited to $10,000. This particularly hurts
many taxpayers in high tax states, such as California.
3. The standard deduction almost doubles, but the personal
exemptions are repealed.
4. The estate tax wasn't repealed, but the estate tax exemption was
doubled.
5. The mortgage interest deduction is allowed for new mortgages up
to $750,000 down from $1,000,000 that was allowed under
previous law.
6. The interest expense on home equity loans is no longer deductible.
Since this new act hasn't been officially named yet do you think the White House will let me call it "The CPA Full Employment Act" ?
Happy Holidays to everyone and I'll be back on track after April 15th.
1040MD
Last edited by Charles Gerughty; 12-23-2017 at 02:39 PM. Reason: grammar
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Boat Racer (12-23-2017),
VroomAB (12-25-2017)
12-23-2017, 02:24 PM
#2
Race Director
Good info Chuck. Enjoy the new ride. Happy holidays.
Happy holidays.
12-24-2017, 01:07 PM
#4
Burning Brakes
Thread Starter
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spireland (12-24-2017)
12-24-2017, 04:22 PM
#6
12-24-2017, 10:07 PM
#7
Banned Scam/Spammer
I dont know many middle class people with $750K houses. All I know is my family with 2 kids will get allot back. $4K ish of my own money. I'm sure Jerry Brown and others will gladly raise the gas or tax something else.
12-25-2017, 02:23 AM
#8
Not uncommon around the bay area here.....sheesh!
12-25-2017, 09:23 AM
#9
This vexes me to no end. I’m upper middle class and I’m bent over. I do not appreciate my taxes going up so that ivanka trump et al can inherit billions tax free. Worse they and the Uber rich get a reduction. Isn’t that a biatch. Sorry had to vent.
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Charles Gerughty (12-25-2017)
12-25-2017, 10:59 AM
#10
Burning Brakes
Thread Starter
12-25-2017, 11:02 AM
#11
Burning Brakes
Thread Starter
Good point. Even homes in the Linda Mar area of Pacifica are pushing a $1,000,000
Last edited by Charles Gerughty; 12-25-2017 at 11:06 AM. Reason: grammar
12-25-2017, 11:07 AM
#12
Burning Brakes
Thread Starter
California does not have to comply with Federal tax laws and in several areas they do not. When I get some input on this I'll send out another post.
Last edited by Charles Gerughty; 12-25-2017 at 11:08 AM.
12-26-2017, 12:40 AM
#14
Banned Scam/Spammer
If you have a Million dollar house no matter where its at that is a million dollar asset. Also. it sounds like there is a cap. As in you can write off a up to 10K but nothing after that which means you would not lose much unless your house is way over that. Either way I'm far from that =-/ . My bother bought a house in Fremont back in the 90s. 1400 sf. 3 bedroom 1950 old how for 200K and sold it 10 years ago for over 600K. I wouldn't feel too sorry.. for the middle class.
12-27-2017, 10:45 AM
#15
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St. Jude Donor '08
I am interested to see what the facts are surrounding the new tax reform laws and how it will effect us. My brother is also an accountant and he cautioned us against believing anything you hear on the news. I think more people will benefit than what we've been led to believe.
12-27-2017, 03:00 PM
#16
Burning Brakes
Thread Starter
I am interested to see what the facts are surrounding the new tax reform laws and how it will effect us. My brother is also an accountant and he cautioned us against believing anything you hear on the news. I think more people will benefit than what we've been led to believe.
There are definite benefits in the law for most taxpayers yet there are perils for others. Each individual will experience different impacts from the new law yet my biggest issue is the spin that it mostly benefits the middle class. I am not being political but the major benefits go to Corporations and wealthy individuals. While I have disagreed with the AMT and Estate tax most of my middle class tax clients will not benefit from these changes.
A simple example is the typical family of 4 that uses the standard deduction. In 2017 they will get a standard deduction of $12,000 plus four exemptions of $4,050 totaling $28,200. In 2018 they get only the increased standard deduction of $24,000. Will this be made up by the reduced marginal tax rates? I don't know and won't be able to tell until I complete the tax return as each client's benefit or peril will be based on their individual facts and circumstances.
All the best - Chuck
12-27-2017, 04:30 PM
#17
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St. Jude Donor '08
Happy Holidays Rich.
There are definite benefits in the law for most taxpayers yet there are perils for others. Each individual will experience different impacts from the new law yet my biggest issue is the spin that it mostly benefits the middle class. I am not being political but the major benefits go to Corporations and wealthy individuals. While I have disagreed with the AMT and Estate tax most of my middle class tax clients will not benefit from these changes.
A simple example is the typical family of 4 that uses the standard deduction. In 2017 they will get a standard deduction of $12,000 plus four exemptions of $4,050 totaling $28,200. In 2018 they get only the increased standard deduction of $24,000. Will this be made up by the reduced marginal tax rates? I don't know and won't be able to tell until I complete the tax return as each client's benefit or peril will be based on their individual facts and circumstances.
All the best - Chuck
There are definite benefits in the law for most taxpayers yet there are perils for others. Each individual will experience different impacts from the new law yet my biggest issue is the spin that it mostly benefits the middle class. I am not being political but the major benefits go to Corporations and wealthy individuals. While I have disagreed with the AMT and Estate tax most of my middle class tax clients will not benefit from these changes.
A simple example is the typical family of 4 that uses the standard deduction. In 2017 they will get a standard deduction of $12,000 plus four exemptions of $4,050 totaling $28,200. In 2018 they get only the increased standard deduction of $24,000. Will this be made up by the reduced marginal tax rates? I don't know and won't be able to tell until I complete the tax return as each client's benefit or peril will be based on their individual facts and circumstances.
All the best - Chuck
Happy New Year. I hope Santa was good to you.
12-30-2017, 03:12 PM
#18
Banned Scam/Spammer
Well looks like I already benefited and it has not kicked in yet. Already got my $1000 bucks from AT&T as promised once Trump signed it. The sad part is some good people just got laid off, but that was in the works for a while. They have been planing and changing things for a while. Hell my job might not be around by 2020. Knowing my luck I'll probably lose it when the c8 comes out. haha
12-31-2017, 01:08 PM
#19
Burning Brakes
Thread Starter
Well looks like I already benefited and it has not kicked in yet. Already got my $1000 bucks from AT&T as promised once Trump signed it. The sad part is some good people just got laid off, but that was in the works for a while. They have been planing and changing things for a while. Hell my job might not be around by 2020. Knowing my luck I'll probably lose it when the c8 comes out. haha
01-01-2018, 12:48 AM
#20
Banned Scam/Spammer
I'm assuming to give back a little they will get back from the Fed's. Their rates are going to drop so much and they have been talking with big companies on tax plans for a while. Dont know if it was a semi deal or help pushed with the Unions. Either way they will get allot back. We will see what many of these companies do with it. If they can spread growth and stop the off shoring of cash as it was meant to do them things should be better. I just would rather see the laying of off people stop, till they have more of a transition plan. I'm just a peon so no one listens to me anyways. haha Also I'm still short the other 64K for my c8... ahhhhh
https://www.washingtonpost.com/news/...=.eda02ea38cef
https://www.washingtonpost.com/news/...=.eda02ea38cef