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Podcast #29: Tax Reform Bills Currently in Congress

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  • Podcast #29: Tax Reform Bills Currently in Congress

    New podcast and shownotes are up this morning about the tax reform bills currently in Congress. Certainly not an evergreen podcast topic....but makes for an interesting discussion right now. Do you think some of the changes will be good for you and lower your tax bill?

  • #2
    Was holding out to buy a house in a HCOL area. The house bill (which just passed) would be rough without the higher mortgage interest deduction

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    • #3
      As far as I can tell my tax bill won't change significantly.  If this is supposed to benefit the rich they're talking about somebody higher up the scale than me.

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      • #4
        I was interested to hear that the 12% tax bracket is phased out for those with an AGI of $1M -- or $1.2M filing jointly! I thought maybe that was an error but I google'd it and found it true. For a two-physician household in a very good year, or with a good side hustle, that could put them in that effective marginal tax rate of 49.4%.

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        • #5
          I was surprised the depth of detail WCI provided with short notice. Nice work!

          Our household is DINKS, I'm primary earner as employed pediatrician. With long term goal of ownership, looks like the no corporate tax breaks may affect me in a decade. By then I may not buy the practice if lack of tax benefits outweigh ownership perks.

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          • #6
            the biggest thing i'm looking forward to is what will happen to the corporation tax...will it be decreased from 35 to 20%?

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            • #7
              Listened to this podcast today and it was a good overview of the tax bills.  I had a left over question that Google hasn't found the answer to.  Anyone here know?

              The House bill wants to change the capital gains exemption for new home sales from two of the last five years to five of the last eight years.  My question is will this change be applied to existing residential properties if it passes, or will these be grandfathered in?  I hope they allow grandfathering as in the case with existing mortgages.
              I sometimes have trouble reading private messages on the forum. I can also be contacted at [email protected]

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              • #8
                I think grandfathered, but again, none of this is law and its all subject to change even after it becomes law.
                Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                • #9
                  Bank on whatever version the Senate passes being close to the final version, with a few tweaks and some SALT deductions added back in. It will be ************************ hard to get 50 GOP votes in Senate and House will have tremendous pressure to just pass the senate bill to avoid a conference.

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                  • #10




                    Bank on whatever version the Senate passes being close to the final version, with a few tweaks and some SALT deductions added back in. It will be ************************ hard to get 50 GOP votes in Senate and House will have tremendous pressure to just pass the senate bill to avoid a conference.
                    Click to expand...


                    Which is unfortunate for at least one reason- going to 4 brackets was a great simplification/tax reform. Fewer brackets eliminates a lot of gamesmanship while still preserving a progressive code. The stupidest bracket ever is that 35% one we have now for singles. It goes from $416, 700 to $418,400. It is literally $1700, 1/10th the absolute size of the 10% bracket and even tinier as a percentage of the income. That's idiotic.
                    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                    • #11




                      Listened to this podcast today and it was a good overview of the tax bills.  I had a left over question that Google hasn’t found the answer to.  Anyone here know?

                      The House bill wants to change the capital gains exemption for new home sales from two of the last five years to five of the last eight years.  My question is will this change be applied to existing residential properties if it passes, or will these be grandfathered in?  I hope they allow grandfathering as in the case with existing mortgages.
                      Click to expand...


                      Unfortunately, this is for houses sold after 12/31/17 so there will be no grandfathering afaik. If you need to qualify, you should sell before 1/1/18.

                      I just published a post with this info and some tax planning tips you need to be aware of, such as the potential $10k property tax exemption. The post is here and I'm going to bump the thread I started. There is (what I consider) some fairly important info in it. Haven't had a chance to listen to the podcast yet, so hoping it's not a re-run  
                      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                      • #12
                        Geez if you're going to sell your house before 12/31 in anticipation of a law that may pass, you'd better get moving. Seems pretty risky though. I think I'd at least wait to see what is signed into law before putting anything on the market, but it seems pretty darn tough to close in <5 weeks over the holidays.
                        Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                        • #13




                          Geez if you’re going to sell your house before 12/31 in anticipation of a law that may pass, you’d better get moving. Seems pretty risky though. I think I’d at least wait to see what is signed into law before putting anything on the market, but it seems pretty darn tough to close in <5 weeks over the holidays.
                          Click to expand...


                          Agreed. That wasn’t my recommendation, just to be clear, but clarification on what the bill stipulates. This will, for the most part, impact ppl who are in the process so that they can time the closing before 1/1/18.

                          If it passes...imo, this w/b in the final bill, but we’ll see.
                          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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