Many existing homeowners found out after buying their homes that the federal government suddenly changed the rules, negatively affecting their financial situation! When the tax legislation, enacted in late 2017, was passed and enacted, some homeowners in about 20 states realized they would likely have to pay more federal income taxes. This is generally known as SALT, or state and local taxes. It limited the amount they could deduct, from income taxes, for these payments, up to a maximum of $10,000. In higher-tax states and localities, the combination of state income taxes and real estate taxes exceeded significantly this title! Where I live, on the North Shore of Long Island, residents have generally been severely affected. With that in mind, this article will attempt to briefly consider, examine, discuss, and revise the various reasons many believe is unfair taxation.
1. Is it a coincidence that those most affected live in states that did not vote for this president? Most of the states with the highest tax costs are the largest, generally providing the greatest degree of public services, etc. Most of these are predominantly occupied by Democratic voters, and President Donald Trump lost in the election. Plus, these areas typically receive the lowest return on your federal taxes—paid! A middle and/or upper-middle class homeowner in the New York metropolitan area often found themselves paying much more because they lost many of their previous itemized deductions! Is it fair, for certain areas, to have to pay a lot for the rest of the area and receive even less for it?
2. Talk to a professional accountant: If you don’t normally use an accountant to prepare and/or file your taxes, it may make sense to schedule a meeting, on a regular basis, to discuss whether you should use certain tax-related strategies. , plan or take certain specific measures to get the best and best benefits. The more you know and plan ahead, the better off you’ll usually be!
3. Your real estate and financial goals: Your goals, regarding real estate and where to reside, should go hand-in-hand with your overall financial goals, priorities, and objectives! The wisest of people should proceed with a well-developed and duly considered overall financial plan!
Are you prepared to make changes, if/when necessary, in a timely and well-considered manner? Are you ready to improve your overall financial picture?