General Discussion

WarGamer

(18,505 posts) Tue May 11, 2021, 06:54 PM May 2021

Why all the tears for those left with lower SALT deductions? [View all]

I agree with Bernie.

I own a home in SoCal.

I paid more in taxes after losing SALT deductions.

Losing SALT deductions affects the top 10%, those making $138k+ a year. I've made 2x that for more than 10 years running...

Fortunately I own my home so I don't deduct mortgage interest. But my number still falls well above the $10k limit and I pay more in taxes than pre 2018.

Just a few facts:

If you're paying more than 10k/year on SALT, you're NOT hurting for money, in fact you're certainly a 10%'er.

YOU can still deduct mortgage interest up to a 1 MILLION dollar mortgage. You can't even QUALIFY for a 1 MILLION dollar mortgage without an income of $300k+

Like Bernie said... we really hurt our own position standing up for the Blue state wealthy after talking about wealth inequality.

61 replies

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Why all the tears for those left with lower SALT deductions? [View all] WarGamer May 2021 OP

I Have A Client With AGI Of $80K, Limited By SALT SoCalDavidS May 2021 #1

Honestly 1,000 dollars over. jimfields33 May 2021 #2

Exactly. WarGamer May 2021 #4

In 22% Bracket, He Loses $220 SoCalDavidS May 2021 #5

Even still. I mean I know he'd rather get it. jimfields33 May 2021 #6

Sure, It's A Small Hit SoCalDavidS May 2021 #8

Understand totally. jimfields33 May 2021 #34

No, the $220 is going to the billionaires who got a tax cut when the rest of us got a hike. lagomorph777 May 2021 #48

the IRS collects the $220 fescuerescue May 2021 #53

Look up "fungible." lagomorph777 May 2021 #54

if you couldn't get that 220 from anywhere else qazplm135 May 2021 #55

That is $220 that is going to help needy people fescuerescue May 2021 #44

Who Said He Complained? SoCalDavidS May 2021 #46

Why are we talking about it then? fescuerescue May 2021 #52

Because It Hit People In Blue States Hardest SoCalDavidS May 2021 #60

It's just $200 fescuerescue May 2021 #61

In my home town, a 800k house has property taxes around 5k a year. WarGamer May 2021 #3

That sure isn't California where properly taxes would be about 9,600, plus add the state income tax JohnSJ May 2021 #9

No. WarGamer May 2021 #10

You buy an 800k house in California today, property taxes on that are 9600. Add to that SIT and JohnSJ May 2021 #15

My valuation is a bit over $800k Sympthsical May 2021 #17

in my part of bay area, housing isn't reassessed for real estate taxes until it Fresh_Start May 2021 #21

I am glad you you are grand fathered in, because anyone buying a house in California now pays 1.2% JohnSJ May 2021 #23

I've been here 18 months Sympthsical May 2021 #35

That is because you bought the house at a much lower price than 800k. If you sold it at 800k, the JohnSJ May 2021 #36

We didn't Sympthsical May 2021 #49

Because of proposition 13 in California, whatever the price of a house is when a House is JohnSJ May 2021 #51

I pay 1,800 on an 80,000 house in Illinois questionseverything May 2021 #26

In California it is 1.2% of what you buy the house for. If you bought a house for 800k here JohnSJ May 2021 #30

I pay $9000 in property taxes on a $260k house in IL. Ace Rothstein May 2021 #43

New England - $200,000 house gets you a 5k tax bill. NutmegYankee May 2021 #25

In many states you pay significantly higher property tax, but in general property values are better JohnSJ May 2021 #28

Prop 13 means that long time homeowners like you pay much less in taxes pnwmom May 2021 #37

Remember that the non-itemizing personal federal deduction is $12,550 (2021) PoliticAverse May 2021 #20

Wow. A $400,000 home where I live has over $4k in property taxes, Ilsa May 2021 #40

I will pay about 6500 qazplm135 May 2021 #56

There are a lot of people who would not be considered wealthy, though their house has appreciated JohnSJ May 2021 #7

But Trump and the MAGATS eliminated SALT deductions to punish Blue states jpak May 2021 #11

didn't eliminate. WarGamer May 2021 #12

You are correct jpak May 2021 #18

This message was self-deleted by its author jpak May 2021 #19

Capping affects millions of people in high cost of living, high tax states. pnwmom May 2021 #38

The problem really is in looking at this one issue in isolation unblock May 2021 #13

correct, it's new mortgages with 1 million dollar plus amounts WarGamer May 2021 #14

In a "fair" system mortgage interest shouldn't be deductable at all. Renters can't deduct their PoliticAverse May 2021 #22

and mortgagers qazplm135 May 2021 #57

Did your numbers come ab ano est? NutmegYankee May 2021 #16

+1. N/t obnoxiousdrunk May 2021 #39

In my experience poorer towns tend to have higher property tax rates dsc May 2021 #42

Losing the SALT deduction incentivizes the wealthy to leave blue states which is not good. Yavin4 May 2021 #24

If they are in the 1%, they won't move significantly, it will be more like those in the middle class JohnSJ May 2021 #31

Lost 10 years worth of retirement savings because of this, in same year I lost my job lostnfound May 2021 #27

Why this incessant fixation on the mortgage interest component of SALT? OilemFirchen May 2021 #29

Because I don't think they consider the complexities involved, and that one size doesn't fit all JohnSJ May 2021 #32

Sales tax is also double taxation MichMan May 2021 #41

And is deductible, though part of the SALT changes. OilemFirchen May 2021 #47

Gasoline and Diesel taxes as well are double taxation. MichMan May 2021 #50

The SALT deduction is a purple district issue that helps Dems keep the house Johonny May 2021 #33

State taxes are a state issue ripcord May 2021 #45

These people reliably vote in higher percentages than lower income people. Hortensis May 2021 #58

Changing SALT deduction amounts was a GOP gambit SoCal Roomba May 2021 #59