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Old 09-27-2018, 09:53 AM   #47
ApS
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Question Taxing the Rich?

Quote:
Originally Posted by Woodsy View Post
Out of State property owners love to lament NH's tax structure... but it is out of state property owners that drive up the property values thus increasing thier own tax burden.

The median household income for towns around the lake is approximately $60 - $65K....

The average waterfront/water access property on the lake is well over $400 - $500K. These waterfront properties are priced completely out of reach for the residents of lakeside communities. The reason for that is they are bought up by wealthier out of state people, primarily as 2nd homes. It is the out of state people that drive up the pricing of the properties... not NH residents. If you don't like paying the property taxes... sell out to a wealthier out of state person and buy a 2nd property in a state with lower property taxes, but an overall higher tax burden. Woodsy
On a walk, I happened by a new Washington, DC, lakefront neighbor, who'd put out a row of black garbage bags for collection the next morning. What should poke out of one bag, but a copy of Power magazine!

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Quote:
Originally Posted by fatlazyless View Post
For tax year 2017 and going back to 1913 when federal personal income tax was first enacted, all local property taxes had been deductible against your income tax payment on a dollar to dollar basis.
Starting in tax year 2018, and due on April 15, 2019, the deduction is now limited to ten thousand dollars.
So, for people with property taxes higher than ten thousand dollars, it means paying that annual property tax bill with real money, as opposed to using it to reduce your federal tax from other various types of income, and that happens every year going forward, until this new tax rule gets changed ..... if and when it ever does.
It was signed into law by the President on Dec 22, 2017, at 11:30-am in the Oval Office just before he flew off to Mar-A-Lago for a family and golf stay-cation for Christmas and New Years.
By eliminating the property tax deduction, it makes owning the property more expensive, because there's no trade-off deduction for above the first ten thousand dollars of annual property tax. We can all shed a tear for those who pay more than ten thousand dollars in property taxes and no longer have this deduction for the amount that is above ten thousand....... boo-hoo-hoo-hoo-hoo ....... crocodile tears ...... to you! Making America Great Again! ...... one plus-$10,000 tax payer at a time ....... "thank you very much."

So, what will this new annual expense do to the value of these high value properties?
1) As a Wolfeboro taxpayer, this new law affects me and the neighbors.

2) I'd expect real estate prices to start sliding down. (As owners and buyers discover the non-deductibility of their property taxes >$10,000—vis-à-vis their new tax bracket).

I'd welcome the counsel of a CPA.
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Last edited by ApS; 09-27-2018 at 10:07 AM. Reason: Add to comment...
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