Trump Tax Reform and Home Prices

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aquabliss said:
Is the 5 year tax free gain only for those who bought a home after the law goes into affect?

If I purchased in Nov 2016 can I still get tax free gains up to $500k in Nov 2018 or I have to wait until Nov 2021?
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From what it appears, you would have to wait until November 2021.  I don't think this is a retroactive situation like the mortgage interest deduction clause.

Interestingly, there is also an AGI clause associated with it now as well, such that if you earn more than 250k/yr (or 500k/yr for a married couple), then you actually get taxed on some of those tax-free gains, depending on how much more than that you make.
 
Thanks for the info.  If that's indeed the case I think sales / inventory will go down drastically.  Seems half the homes I see on the market are people making a quick buck from a 2-3 years back.

Homes for sale in Great Park / Orchard Hills will have little inventory I predict.  What will that mean for prices no idea.
 
i1 said:
OCHouse99 said:
Are any of the California Republican representatives coming out in opposition?  From what I can read most are at least remaining silent if not outright supporting it (McCarthy).
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CA 45 Rep Mimi Walters is outright supporting. https://walters.house.gov/media-cen...-act-win-middle-class-and-american-enterprise
November 2, 2017

Press Release

November 2, 2017

(202) 225-5611

The Tax Cuts and Jobs Act is a Win for the Middle Class and American Enterprise

Washington, DC ? Rep. Mimi Walters (R-California) released the following statement regarding today?s release the Tax Cuts and Jobs Act.

Said Rep. Walters, ?Today, House Republicans took a major step toward ending the tax code status quo and delivering on the promises we made to the American people.  The Tax Cuts and Jobs Act will provide much needed tax relief for hard-working taxpayers across the country squeezed by a federal tax code that is outdated, complex and unfair.

?Under our plan, tax rates will fall, the standard federal deduction will double, and middle class workers will benefit.  This means Americans will get to keep more of their hard-earned paychecks.

?The Tax Cuts and Jobs Act will also make the United States into one of the most business friendly environments in the world.  These long overdue changes will put the government back on the side of job creators and those working to create prosperity for us all.?
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Her voting records are NOT good for Californians. I wonder how she got elected in the first place. Comes mid term I would vote her OUT. She has not done the representation for her district. MIMI WALTER IS OUT.
 
Mimi Walters was annointed by billionaires and has never faced a competitive election. Are you surprised that she is willing to throw 99% of her constituents under the bus?

At least the NY/NJ pubs held out for a better deal. Not Mimi, she's all-in.
 
Soylent Green Is People said:
If this passes.... anyone notice the one thing that will likely keep OC values high?

Broadcom would re-relocate HQ from Singapore to the US (assuming that means Irvine) Could be San Jose only, but they likely still have some property here.

[url]http://www.latimes.com/politics/la-na-pol-gop-tax-cuts-20171102-story.html[/url]

I do so love the LA Times pushing agendas as in "Critics say the tax bill is skewed heavily toward businesses and the wealthy". Let me rewrite this for them.... "Leftists say the tax relief plan is tilted too far towards favoring job creators, employers and capitalists".

My .02c
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HQ will stay in SJC. Only 15 current openings in Irvine. Critical mass of talent is in SJC. I wish there was more good tech jobs in Irvine - I'd love to move back. Quality of life is far superior to Bay area but $$$ talk.
 
paperboyNC said:
Mimi Walters was annointed by billionaires and has never faced a competitive election. Are you surprised that she is willing to throw 99% of her constituents under the bus?

At least the NY/NJ pubs held out for a better deal. Not Mimi, she's all-in.
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Too many people will mindlessly vote for the incumbent Republican no matter what she does, so she can do whatever she wants without any penalty. Party over country, really.
 
aquabliss said:
Thanks for the info.  If that's indeed the case I think sales / inventory will go down drastically.  Seems half the homes I see on the market are people making a quick buck from a 2-3 years back.

Homes for sale in Great Park / Orchard Hills will have little inventory I predict.  What will that mean for prices no idea.
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That's exactly what might happen...I think resale inventory goes down which will more than offset some people going to the sidelines. 
 
Did a quick comparison on my 2018 projected taxes based on the current tax code and Trump's "new and improved" tax plan and see that I'll be paying about $2K more to the Donald! Where do I sign that "Impeach Trump" petition? Lots of sites to calculate your new tax liability - I usedhttps://www.calcxml.com/calculators/trump-tax-reform-calculatorwhich will be updated as they revise the plan.

So if it looks like Trump's plan will actually have a chance at passing I'll be making my April, 2018 property tax payment at the end of this year but need to check out the AMT because my property tax deduction will then include all of 2017 + half of 2018 and the supplemental bills for house purchased last year. Essentially my deduction will be more than twice the normal. For those who bought a new-build home this year they will likely pay a small amount of property tax in 2017 but then next year they will get hit with the supplemental bill plus their regular full rate tax next year. They better be praying that Trump's $10K property tax maximum doesn't make it into the final bill.
 
DrTravel said:
Did a quick comparison on my 2018 projected taxes based on the current tax code and Trump's "new and improved" tax plan and see that I'll be paying about $2K more to the Donald! Where do I sign that "Impeach Trump" petition? Lots of sites to calculate your new tax liability - I usedhttps://www.calcxml.com/calculators/trump-tax-reform-calculatorwhich will be updated as they revise the plan.

So if it looks like Trump's plan will actually have a chance at passing I'll be making my April, 2018 property tax payment at the end of this year but need to check out the AMT because my property tax deduction will then include all of 2017 + half of 2018 and the supplemental bills for house purchased last year. Essentially my deduction will be more than twice the normal. For those who bought a new-build home this year they will likely pay a small amount of property tax in 2017 but then next year they will get hit with the supplemental bill plus their regular full rate tax next year. They better be praying that Trump's $10K property tax maximum doesn't make it into the final bill.
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The Senate, reportedly, is actually proposing that property tax not be deductible at all.  Thus, no more state or property tax deductions at all, at least per the reports as of now...
 
Jantoven said:
DrTravel said:
Did a quick comparison on my 2018 projected taxes based on the current tax code and Trump's "new and improved" tax plan and see that I'll be paying about $2K more to the Donald! Where do I sign that "Impeach Trump" petition? Lots of sites to calculate your new tax liability - I usedhttps://www.calcxml.com/calculators/trump-tax-reform-calculatorwhich will be updated as they revise the plan.

So if it looks like Trump's plan will actually have a chance at passing I'll be making my April, 2018 property tax payment at the end of this year but need to check out the AMT because my property tax deduction will then include all of 2017 + half of 2018 and the supplemental bills for house purchased last year. Essentially my deduction will be more than twice the normal. For those who bought a new-build home this year they will likely pay a small amount of property tax in 2017 but then next year they will get hit with the supplemental bill plus their regular full rate tax next year. They better be praying that Trump's $10K property tax maximum doesn't make it into the final bill.
Click to expand...

The Senate, reportedly, is actually proposing that property tax not be deductible at all.  Thus, no more state or property tax deductions at all, at least per the reports as of now...
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How many people are going to be impacted similar to DrTravel's scenario in the entire country. I am sure the number would be more like him in Irvine and OC, but across the country?
 
If you owe more taxes under the proposed plan, it's the result of living in one of the highest taxed states in the Union, and no longer being able to deduct your state/property taxes in full.  Instead of impeaching Trump, you should convince your friends and family to vote for politicians that actually want to lower your state tax burden.
 
newPParker said:
Jantoven said:
DrTravel said:
Did a quick comparison on my 2018 projected taxes based on the current tax code and Trump's "new and improved" tax plan and see that I'll be paying about $2K more to the Donald! Where do I sign that "Impeach Trump" petition? Lots of sites to calculate your new tax liability - I usedhttps://www.calcxml.com/calculators/trump-tax-reform-calculatorwhich will be updated as they revise the plan.

So if it looks like Trump's plan will actually have a chance at passing I'll be making my April, 2018 property tax payment at the end of this year but need to check out the AMT because my property tax deduction will then include all of 2017 + half of 2018 and the supplemental bills for house purchased last year. Essentially my deduction will be more than twice the normal. For those who bought a new-build home this year they will likely pay a small amount of property tax in 2017 but then next year they will get hit with the supplemental bill plus their regular full rate tax next year. They better be praying that Trump's $10K property tax maximum doesn't make it into the final bill.
Click to expand...

The Senate, reportedly, is actually proposing that property tax not be deductible at all.  Thus, no more state or property tax deductions at all, at least per the reports as of now...
Click to expand...

How many people are going to be impacted similar to DrTravel's scenario in the entire country. I am sure the number would be more like him in Irvine and OC, but across the country?
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Basically, a few of the blue coastal states stand the most to lose - NY, NJ, CA.  Most of the other parts of the country actually aren't able to deduct their mortgage interest / property taxes, or if they do, to a very small extent. 
 
paperboyNC said:
Mimi Walters was annointed by billionaires and has never faced a competitive election. Are you surprised that she is willing to throw 99% of her constituents under the bus?

At least the NY/NJ pubs held out for a better deal. Not Mimi, she's all-in.
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Vote her out I say!
 
"My overriding concern with the current House tax reform proposal is that many Californians who need and deserve tax relief won?t benefit from the current framework, or at worse, may see their tax burden rise as a consequence of certain changes including, but not limited to, the elimination of the state and local income tax deduction."
http://www.kpbs.org/news/2017/nov/08/issa-wont-support-tax-reform-bill-its-current-form/

Where?s the other republican congressman looking out for Californians?


 
eyephone said:
"My overriding concern with the current House tax reform proposal is that many Californians who need and deserve tax relief won?t benefit from the current framework, or at worse, may see their tax burden rise as a consequence of certain changes including, but not limited to, the elimination of the state and local income tax deduction."
http://www.kpbs.org/news/2017/nov/08/issa-wont-support-tax-reform-bill-its-current-form/

Where?s the other republican congressman looking out for Californians?
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Great question.  There was another article stating how the GOP House members in NJ/NY pushed Brady really hard with the proposed repeal of state/property tax deductions and got him to allow the 10k property tax deduction.  Of note, this is particularly useful for NY/NY, as their property tax rates are much higher than California, whereas their state income tax is definitively lower than California's.  So the new 10k cap proposed by Brady's committee helps mitigate the damage (somewhat) to those two states, but not so much for California.

Disappointing that our House GOP reps aren't pushing harder for us...
 
If we can't deduct CA state income tax with the new tax law, why don't we just get rid of CA income taxes?  :)
 
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