Many existing homeowners have found, after buying their home, that the federal government suddenly changed the rules and, it hurt their financial situation! When the tax legislation, enacted in late 2017, was passed and proclaimed into law, some homeowners in about 20 states realized they would likely have to pay more federal income tax! This is, generally, called, SALT, or state and local taxes. It capped the amount they could deduct from income taxes for those payments, to a maximum of $ 10,000. In higher tax states and localities, the combination of state income taxes and property taxes greatly exceeded this cap! Where I live on the north coast of Long Island, residents have generally been severely affected. With that in mind, this article will attempt, briefly, to examine, examine, discuss and review several reasons many believe this is unfair taxation.
1. Is it a coincidence, the most affected live in states that did not vote for this president? Most of the states with the highest imposed costs are the highest, which generally provide the greatest number of utilities, etc. The majority of them are, for the most part, occupied by Democratic voters and President Donald Trump, lost, in the election. In addition, these regions, generally, receive the lowest return on their federal taxes paid! A middle class and / or upper middle class homeowner in the New York metro area often found himself paying a lot more because he lost so many of his old itemized deductions! Is it fair for some regions to have to pay for a large part of the rest of the region and receive, let alone, for it?
2. Chat with a professional accountant: If you do not usually hire an accountant to prepare and / or report your income tax returns, it may be a good idea to schedule a meeting, on a regular basis, to discuss the advisability of using certain strategies, related to Taxation. , plan or take some specific action for your best benefits! The more you know and the more you plan ahead, the better you will usually be!
3. Your real estate and financial objectives: Your goals, regarding real estate and where you live, should go hand in hand with your overall financial goals, priorities and objectives! The wisest individuals proceed with a well-developed and well-thought-out global financial plan!
Are you ready to make changes, if / when needed, in a thoughtful and timely manner? Are you ready to improve your overall financial situation?