CDZ State and local tax limitation on tax deductibility

Discussion in 'Clean Debate Zone' started by Xelor, Dec 17, 2017.

  1. task0778
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    task0778 Gold Member Supporting Member

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    And you can keep on making stuff up and spewing the dem party line.
     
  2. Xelor
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    Xelor Gold Member

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    How much of the linked content in the post 8 passage below did you not read?
     
  3. Toronado3800
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    Toronado3800 VIP Member

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    You do some math dude! Where do you find the time.

    Yesterday besides work and kid time I changed three toilet fill valve mechanisms. I had one found one of the new ones I really liked when replacing one which was broke so I switched two others which were performing but only at minimum standards.

    Then I did some light reading on the Battle of the Bulge in bed. That was it. I saw zero minutes of tv excepting the cartoon the kids had on in the morning.

    Keep up the work!
     
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  4. Boss
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    Boss Take a Memo:

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    Hold on a minute. You are conflating the SALT deduction with home mortgage deduction. SALT is state and local tax deduction. This is the federal deduction you're allowed to claim for state and local income tax paid... has nothing to do with your home.

    And it is being reformed to limit the deduction to $10k. Meaning, you will not be able to claim the FULL amount if over $10k. Not very many "middle class" or "working poor" folks are paying over $10k in state and local taxes. I'd say there are probably NONE.

    I like eliminating the SALT deduction, I would have been fine with eliminating it entirely. I think doing that would give incentive to states to lower taxes. And let's be honest, the vast majority of taxpayers, especially in the lower echelon, don't itemize and aren't effected by the SALT deduction.
     
  5. task0778
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    task0778 Gold Member Supporting Member

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    Xelor believes that there is something in the new tax bill that allows rich guys to bypass the $10k limit on the SALT deduction yet has shown nothing to show where he got that information other than obscure references and a conversation with his tax guy. Perhaps I am mistaken, but I think the $10k limit on deductions INCLUDES your property tax AND your State and Local taxes. But that limit does not include the mortgage interest deduction, which I think is also capped. I have yet to see anything that indicates a pass through business gets to avoid that $10k limit on SALT. What he shows is the current tax code and rules rather than anything from the new tax code, and to date NOBODY has indicated that the old way is still in effect. All I see everywhere I look is the same statement on the $10k limit on SALT deductions in the new tax law with NO mention of pass throughs or anyone else getting around that.
     
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    Last edited: Dec 19, 2017
  6. Xelor
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    Xelor Gold Member

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    Well, in all honesty, the "math" I did for that post took all of a few seconds. Linear equations and deriving them are, after all, seventh grade math. Moreover, as I've noted elsewhere (though I have no idea of whether you've happened upon the posts in which I did so), I have a graduate business degree. The math of taxes is among the things seekers of such a degree are expected to know.

    Thus, the direct answer to "where do I find the time" to do the sort of math one'll see me present in posts here is that I found the time and obtained the noted ability ages and ages ago when I chose not to "sleep though" the classes I took in K-12 school, college and graduate school. There is another factor: I'm semi-retired. I have withdrawn, for example, from nearly all the selling and practice management responsibilities/activities typical of senior partners in professional services firms, thereby leaving me rarely with more than four hours of firm-related work to do each day. (Were it not for several clients insisting that I retain oversight control for the engagements I commenced with them, I'd now be fully retired.)

    I too do a bit of daily reading. Some of it "light," some of it not, and some of it, most notably many but not all of the posts I read on USMB, so "light" that it's f*cking insipid. LOL (And I hope I don't need to say so, but JIC I do, no, I'm not "hinting," so don't take it that way.)
     
  7. Xelor
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    Xelor Gold Member

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    Among the reference I provided is the tax code itself. I provided links to the specific IRS website pages where those provisions, which remain unaltered by the GOP tax bill (I also provided the link to the conference committee bill that the House and Senate will pass), are found and explained. I also provided links to the damn schedules (forms) on which one'd record the deduction!

    F*ckin'-a! Read the provisions! Do you really need to f*cking be spoon-fed!?!? If so, I'm not posting here to do that for you or anyone else.

    And I think I can safely assert that few if any members provide the depth and breadth of credible reference links and rigorously researched (by myself or by the authors of the documents I provide in my links) content that I do, and I can count on one, maybe two, hands the number of members who bother to read that content. So if the nature and extend of "spoon-feeding" you get from me isn't enough, I dare say that you won't ever get enough with regard to matters that transcend the comprehension of a five-year-old.

    Obviously, you aren't looking in the right places, in spite of the fact that I provided links to the right places to look. Below is the basic "formula" for everyone's 1040 form.

    Gross income (income from all sources)
    Less: "Above the line" deductions (aka pre-AGI deductions)
    Adjusted gross income (AGI)
    Less: the greater of the standard deduction or the sum of allowed itemized deductions
    Taxable income
    Times: applicable tax rate
    Provisional income tax
    Less: allowed tax credits
    Gross tax liability for the tax year
    Less: taxes paid during the tax year
    Current income tax liability -- This sum is what one must pay, usually no later than April 15th.​

    Using the information I've already provided, figure out how qualifying taxpayers (rich or not) can take more than $10K in SALT deductions.

    I've been very clear about the fact that it's not just "any" rich guys who can bypass the limitation. Did you also not read the qualifying remarks to that effect?
     
    Last edited: Dec 19, 2017
  8. Staidhup
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    Staidhup Gold Member Supporting Member

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    So how many Americans live in a high valued home subject to property taxes in excess of $10,000? What is the income threshold determining when a tax payer itemizes their deductions? So who are these individuals that will be effected?
    Maybe if individuals paid closer attention to who they elect to govern their communities, cities, and states this problem would be addressed. Look at the 10 highest taxed states, cities, and communities and what do you see, liberal strongholds, why is that?
     
  9. Xelor
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    Xelor Gold Member

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    I can assure you it would not. The elected leaders at state and lower levels of government do not design and enact federal income tax provisions. Whether SALT is not at all, wholly or partially deductible is entirely a matter of whether members of Congress make it so. The issue here under discussion isn't the magnitude of one's state and local taxes, it's whether one gets to deduct them from one's income when calculating one's federal income tax liability.
     
  10. Staidhup
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    Staidhup Gold Member Supporting Member

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    Why should American Tax Payers, in essence, be forced to subsidize those that choose to live in financially troubled states? When ones states financial stability necessitates high tax rates why should the balance of the country bail them out? I firmly believe one should not be granted the ability to deduct one's tax's paid in the state they so choose to live. It is ones choice, they have the freedom to choose, where they live. Congress has the federal government to look after, which is a financial mess ,and in no way should be subsidizing states due to incompetence, that rests upon the residents of the state and heads of the people they elect to represent them.
     
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