Many existing homeowners, found, after they purchased their houses, the Federal Government, suddenly changed the rules, and, it adversely affected, their financial picture! When the tax legislation, enacted towards the end of 2017, was passed, and enacted, some homeowners, in approximately, 20 states, realized, they would probably, have to pay more Federal Income Taxes! This is, generally, referred to, as SALT, or state and local taxes. It capped the amount, they could deduct, from the income taxes, for these payments, to a maximum of $10, 000. In higher – tax states, and localities, the combination, of State Income Taxes, and real estate taxes, significantly exceeded this cap! Where I live, on the North Shore of Long Island, residents were, generally, severely, adversely impacted. With that in mind, this article will attempt to, briefly, consider, examine, discuss, and review, several reasons, many believe, this is unfair taxation.
1. Is it a coincidence, those impacted, most severely, live in states, which did not vote for this President? Most of the states, with the highest, imposed costs, are the largest ones, which supply, generally, the greatest degree of public services, etc. The majority of these, are, predominantly, occupied by Democratic voters, and President Donald Trump, lost, in the election. In addition, these areas, generally, receive the lowest return on their federal taxation, paid! A middle, and/ or, upper – middle class, homeowner, in the New York Metropolitan Area, often, found himself, paying far more, because, he lost so many of his former, itemized deductions! Is it fair, for certain areas, to have to pay for much of the rest of the area, and, receive, even less, for it?
2. Discuss with a professional accountant: If you don’t ordinarily, use an accountant, for preparing, and/ or, filing your taxes, it may make sense, to schedule a meeting, on a regular basis, to discuss, whether you should use certain strategies, tax – related, planning, or take certain, specific steps, for your best, finest benefits! The more you know, and plan, in advance, the better – off, you will usually, be!
3. Your real estate, and financial goals: Your objectives, regarding real estate, and where, to reside, should go, hand – in – hand, with your overall, financial goals, priorities, and objectives! The wisest individuals, proceed, with a well – developed, properly considered, overall, financial plan!
Are you prepared, to make changes, if/ when, necessary, in a well – considered, timely manner? Are you prepared, to enhance your overall financial picture?