Author Topic: Trump-Republican tax plan, Bad for large families  (Read 138369 times)

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Re: Trump-Republican tax plan bad for large families
« Reply #660 on: December 18, 2017, 12:32:16 AM »
It will simply turn the red States blue
Repost
This way the states they move into will turn blue.
Feelings don't care about your facts

Offline mordechain

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Re: Trump-Republican tax plan bad for large families
« Reply #661 on: December 18, 2017, 12:45:34 AM »
Have there been any changes to the foreign tax credits? I.e for us citizens filing from Israel or Canada etc..?

Offline mr12

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Re: Trump-Republican tax plan bad for large families
« Reply #662 on: December 18, 2017, 12:54:04 AM »
It's not really fully refundable. It's limited to 15% of income over 3k.
I think you're referring to the old additional child tax credit. New credit should be 1400, fully refundable, IINM

Offline ilherman

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Re: Trump-Republican tax plan bad for large families
« Reply #663 on: December 18, 2017, 01:00:18 AM »
Any experts on here? I'm in the process of buying a house which is an estate I believe. The seller called me today that if I want it I most close before 12/31 since the new tax bill will affect them very badly and they will have to pay a lot of tax if they close after 12/31. Does this make any sense? Even if it is an estate, my understanding is that the estate tax is only getting easier. Wanna know if the guy is BSing me or there could be something to it?
You can say what you think when you think what you say.

Offline ExGingi

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Re: Trump-Republican tax plan bad for large families
« Reply #664 on: December 18, 2017, 01:07:06 AM »
Any experts on here? I'm in the process of buying a house which is an estate I believe. The seller called me today that if I want it I most close before 12/31 since the new tax bill will affect them very badly and they will have to pay a lot of tax if they close after 12/31. Does this make any sense? Even if it is an estate, my understanding is that the estate tax is only getting easier. Wanna know if the guy is BSing me or there could be something to it?
Is the seller actually an estate, or is it a trust or some other family member?

Depending on who owned the house at the date of death, there might be capital gains taxes involved.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline Baruch

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Re: Trump-Republican tax plan bad for large families
« Reply #665 on: December 18, 2017, 01:21:53 AM »
I think you're referring to the old additional child tax credit. New credit should be 1400, fully refundable, IINM
I'm pretty sure you're mistaken.
It's fully refundable, but if you make 15k, you would get 1,800, even if you have 12 kids. 15,000-3,000x.15

CM(with a link)IIW

If you were right, this would be the biggest welfare program since....



« Last Edit: December 18, 2017, 01:26:54 AM by Baruch »

Offline ilherman

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Re: Trump-Republican tax plan bad for large families
« Reply #666 on: December 18, 2017, 01:31:56 AM »
Is the seller actually an estate, or is it a trust or some other family member?

Depending on who owned the house at the date of death, there might be capital gains taxes involved.
I just checked. The house is under the kids names for the longest time. Way before the father died. What gives now?
You can say what you think when you think what you say.

Offline ExGingi

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Re: Trump-Republican tax plan bad for large families
« Reply #667 on: December 18, 2017, 09:21:24 AM »
I just checked. The house is under the kids names for the longest time. Way before the father died. What gives now?
So, as I suspected, this has absolutely nothing to do with estate taxes and everything to do with a huge capital gain (presuming the property was gifted with a very low cost basis, so almost entire sale price is capital gains).

I now defer to the CPAs around here to show the tax difference between getting a capital gain of 1,000,000 (for illustration purposes) in 2017 for a NYC resident vs getting that gain in 2018 based on the new tax law.
I've been waiting over 5 years with bated breath for someone to say that!
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Re: Trump-Republican tax plan bad for large families
« Reply #668 on: December 18, 2017, 09:23:37 AM »
I just checked. The house is under the kids names for the longest time. Way before the father died. What gives now?
So it is now a question of the kids tax situation including them possibly considering it to be a second home and or offsetting with capital losses.
Feelings don't care about your facts

Offline aro123

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Offline aro123

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Re: Trump-Republican tax plan bad for large families
« Reply #670 on: December 18, 2017, 12:18:51 PM »
I'm pretty sure you're mistaken.
It's fully refundable, but if you make 15k, you would get 1,800, even if you have 12 kids. 15,000-3,000x.15

CM(with a link)IIW

If you were right, this would be the biggest welfare program since....
so maybe it's time to fix your "fake news" title of this thread

Offline shapsam

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Re: Trump-Republican tax plan bad for large families
« Reply #671 on: December 18, 2017, 12:34:01 PM »
so maybe it's time to fix your "fake news" title of this thread
+1 It seems like most large families will pay less taxes or get a bigger refund.

Offline churnbabychurn

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Re: Trump-Republican tax plan bad for large families
« Reply #672 on: December 18, 2017, 03:21:30 PM »
+1 It seems like most large families will pay less taxes or get a bigger refund.
Yeah, I'd save a few k in taxes cuz of the increase credits

Offline Baruch

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Re: Trump-Republican tax plan bad for large families
« Reply #673 on: December 18, 2017, 03:39:26 PM »
so maybe it's time to fix your "fake news" title of this thread
But it's only 15% of income

Offline mr12

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Re: Trump-Republican tax plan bad for large families
« Reply #674 on: December 18, 2017, 03:59:41 PM »
But it's only 15% of income
Source please

Offline skyguy918

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Offline ChaimMoskowitz

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Re: Trump-Republican tax plan bad for large families
« Reply #676 on: December 18, 2017, 04:19:25 PM »
Is low/middle class based on income, net worth or both?
I just found a new supply of forks!

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Re: Trump-Republican tax plan bad for large families
« Reply #677 on: December 18, 2017, 04:23:36 PM »
https://www.bloomberg.com/news/articles/2017-12-18/finance-gurus-devise-funky-workarounds-to-loss-of-salt-deduction

(Not a response to the prior comment)



If they make state tax a charitable deduction in NJ that may be a windfall to S corps who can expense charity on state returns.
Feelings don't care about your facts

Offline skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #678 on: December 18, 2017, 06:37:38 PM »
If they make state tax a charitable deduction in NJ that may be a windfall to S corps who can expense charity on state returns.
Huh? One of us did not read the article very well, though to be honest it might be me.

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Re: Trump-Republican tax plan bad for large families
« Reply #679 on: December 18, 2017, 06:40:25 PM »
Huh? One of us did not read the article very well, though to be honest it might be me.

Charitable Gifts

One tactic: Allow residents to make charitable gifts to the state instead of paying income tax.

That would involve legislators encouraging residents to donate to, say, New Jersey (insert quip here), instead of paying income taxes. The self-interested philanthropists who took up the state on the offer would receive a state income-tax credit for the full amount of their gift, which would qualify for a federal deduction.

Wealthy taxpayers already use a similar ploy in 18 states that offer at least partial tax credits in return for donations to nonprofits that grant tuition vouchers to private and religious schools. It especially appeals to affluent filers who pay the alternative minimum tax, which doesn’t allow them to claim deductions for state and local levies.
Similar Strategy

In a memo released in 2011, the Internal Revenue Service gave its blessing for taxpayers to claim federal deductions on those gifts. The combination of a 100 percent state-tax credit and a federal deduction actually makes the gifts profitable for some donors, said Carl Davis, research director for the Institute on Taxation and Economic Policy.

“It’s really just a mechanism in state law that lets people launder state income-tax payments and convert them into charitable contributions,” Davis said.

Alas, it would involve a loophole that’s easy to close, he said.

“Under the current rules, it’s workable,’’ he said. “But I don’t see Congress or the IRS letting a state get away with it very long.”

The charitable-gift gambit isn’t the only potential loophole. States could quit relying on income tax, paid by individuals, and switch to payroll taxes, levied on employers, according to a Dec. 7 report, “The Games People Play,” by a group of tax experts that includes Kamin and Shanske.

If employers pay the payroll tax and reduce employees’ salaries by the same amount, workers wouldn’t have to deduct anything and would wind up being paid the same amount. That would allow states to collect the same revenue while preserving individuals’ deductions on federal returns.
Feelings don't care about your facts