I.R.S. Warns States Not to Circumvent State and Local Tax Cap

Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by bcheung on Wednesday May 23, 2018 @11:09PM (#17140775)

Not sure I follow. The wealthier have higher incomes and higher property taxes due to buying more expensive homes. The $10,000 cap hits them even harder.

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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by Spooky23 on Thursday May 24, 2018 @05:15AM (#17142337)

If you live in New York, New Jersey, California, etc, a large percentage/majority of homeowners are impacted by the $10k cap.

But you need to clear $24k in deductions (as a married couple) to even take that deduction.

The average homeowner loses, as they can’t cross the threshold, and every marginal state/local tax dollar costs 15-25% more than it did before.

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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by bcheung on Friday May 25, 2018 @09:26PM (#17159565)

The 2017 standard deduction for married couples was $12,700 (compared to $24K in 2018). So the average homeowner also gets an additional $11,300 tax free. Granted so do non-homeowners.

I don't think the "average homeowner" would complain that they can't take as big of a homeowners deduction when the net result is they are exempting a larger portion of their income regardless.

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