For me it might be a wash. My state and local taxes (state and city tax) are almost 10% combined, and that's no longer deductible. My > 500k mortgage had a big interest deduction yearly, which won't exist.
But I'm paid through a pass-through LLC, which will have a big savings. And it's no longer incentivizing to be an owner-occupier due to the mortgage interest deduction disappearance plus the cap gains exclusion (first 250,000 / 500,000 if married exclusion on sales profit of a property if you've lived in it 2 years, moving up to I believe 5).
It's crazy. It's like the financial incentives are geared towards rentier classes (since I might as well rent my place out and perhaps even put it in its own LLC), self-employed temps, and away from people with student debt, medical expenses, mortgage debt, etc. etc.
No this will apply to the 2018 tax year so 2017 is going to be under the existing tax structure. Thank god, because otherwise mass craziness would have broken out from people setting up withholdings under a false tax structure.
I agree with this being geared towards rentier class but those markets are also likely to see upset in pricing due to loss of tax savings. So at the end of the day we might all be at a loss — except for people who make out on the estate tax and corp tax rate drops. Aka rich people and corporations.
For me it might be a wash. My state and local taxes (state and city tax) are almost 10% combined, and that's no longer deductible. My > 500k mortgage had a big interest deduction yearly, which won't exist.
But I'm paid through a pass-through LLC, which will have a big savings. And it's no longer incentivizing to be an owner-occupier due to the mortgage interest deduction disappearance plus the cap gains exclusion (first 250,000 / 500,000 if married exclusion on sales profit of a property if you've lived in it 2 years, moving up to I believe 5).
It's crazy. It's like the financial incentives are geared towards rentier classes (since I might as well rent my place out and perhaps even put it in its own LLC), self-employed temps, and away from people with student debt, medical expenses, mortgage debt, etc. etc.