IRS warns only some can benefit from filing property taxes early ahead of new law

[Amica Nostra 4,803]

8 minutes ago, IDWAF said:

None

Don’t even know what SALT is, outside of what I season my food with. Himalayan, preferably.

It's all just sodium chloride! 

[Amica Nostra 4,803]

29 minutes ago, IDWAF said:

I do, and I will for 2017.  Fortunately, that burden will be lifted in 2018 with the new tax law.  The $24K standard deduction will be much more than my current $15-16K itemized deductions that I have to prove every year.

Yes, sounds like you come out ahead.

[charmander 692]

26 minutes ago, Italian_in_NYC said:

Maybe, but how many people making less than $50k will itemize over $24k?

How many of those have a SALT bill of over $10k?

Very few if not none. Here are the average itemized deduction amounts per agi for 2015 (in thousands) from this sheet. Unless your household income is over $100K, pretty much you'll go with the new standard deduction.

 

 

 

[Italian_in_NYC 259]

2 minutes ago, Il Mango Dulce said:

Yes, sounds like you come out ahead.

But so do I, even though I have a large SALT bill and I will lose roughly $30k-$35k of that deduction next year.

[Italian_in_NYC 259]

4 minutes ago, charmander said:

Very few if not none. Here are the average itemized deduction amounts per agi for 2015 (in thousands) from this sheet. Unless your household income is over $100K, pretty much you'll go with the new standard deduction.

 

 

 

Exactly my point.

This push to prepay property taxes (for those not in the AMT) is just an extra tax break for 2017.

It is totally legit and I advised some clients to do it, but please do not paint it as local government trying to save the middle and lower-middle class from a tax increase. That's what the media is doing.

I mean, read Gov Cuomo's executive order, for god's sake.

[Steeleballz 7,550]

41 minutes ago, IDWAF said:

I do, and I will for 2017.  Fortunately, that burden will be lifted in 2018 with the new tax law.  The $24K standard deduction will be much more than my current $15-16K itemized deductions that I have to prove every year.

 

  You are also losing personal exemptions. If it's just you and your wife, 16k in itemized deductions and 2 personal exemptions is roughly the same as the 24K standard deduction. I guess not having to itemize will mean less work to do before you file, if that's what you meant by burden.

[Voice of Reason 10,298]

18 minutes ago, Steeleballz said:

 

  You are also losing personal exemptions. If it's just you and your wife, 16k in itemized deductions and 2 personal exemptions is roughly the same as the 24K standard deduction. I guess not having to itemize will mean less work to do before you file, if that's what you meant by burden.

Keeping track of all those deductible items is a pain.  

 

I usually keep my ETR around 9-12% each year, so pretty happy if the standard deduction keeps me in the same ballpark.

Edited December 29, 2017 by IDWAF

[Ban Hammer 13,548]

5 hours ago, Il Mango Dulce said:

 

I have never seen good tax advice on this site.

 

 

here's some good tax advice - pay your taxes on time 

[Ban Hammer 13,548]

1 hour ago, IDWAF said:

 

Don’t even know what SALT is, outside of what I season my food with. Himalayan, preferably.

strategic arms limitation talks?

[Voice of Reason 10,298]

5 hours ago, Ban Hammer said:

strategic arms limitation talks?

Now THOSE I do remember!

[Boiler 46,107]