Georgia Trail Riders Forum
MEMBERS DISCUSSION AREA => General Discussion => Topic started by: DOUG on December 14, 2017, 10:56:59 AM
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On December 13, 2017, House and Senate leaders reconciled their two versions of the Tax Cuts and Jobs Act.
Among individuals, it would help higher income families the most. Everyone gets a tax cut in 2019. Neither plan helps the lowest-income families. That's because more than 70 million Americans don't make enough to pay taxes.
- The combined bill cuts the corporate tax rate from 35 percent to 21 percent in 2018.
- The top individual tax rate will drop to 37 percent.
- Both plans cut income tax rates, double the standard deduction, and eliminate personal exemptions.
- Both tax plans eliminate most itemized deductions but the exceptions are charitable contributions, mortgage interest, property taxes, and retirement savings.
- The combined bill allows taxpayers to deduct up to $10,000 in state and local taxes.
- Both plans double the standard deduction for everyone.
- Both plans eliminate personal exemptions.
- Both plans double the estate tax exemption.
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My small business is very excited for this. We have a total of 5 employees... will be great for the small businesses out there.
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
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I think I'll end up breaking even on regular income and annual bonus under the plan. However, a component of another rolling long term bonus (they get awarded and paid annually once you get through a few years of awards) is discretionary free cash flow, which I'm pretty confident will be improved with a lower business tax burden. Whether it'll impact me will depend on what the current and future nominal rate ends up being.
I think business tax should be zero, so I'm generally aligned with this tax plan, but I'm disturbed by three things:
1) the Republicans are trying to trick people into thinking this is a tax revolution for the middle class, when at best it's a minor restructuring for corporations with a temporary reduction in tax for middle class folks.
2) little popular support for the plan: most people are aware the Republicans are not being honest, which is why it has so little support.
3) it will absolutely add to the national debt. Not a major concern for me, but you guys with kids should be concerned, since they will pay the price for it in the long run.
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
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Oh Willis...what is your concern with a congressperson having a retirement plan?
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Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve
Term limits are an absolute need.
Congressional pensions are the same as any other federal employee.
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Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve
Term limits are an absolute need.
Congressional pensions are the same as any other federal employee.
Pension the same I think but they do have other benefits
https://www.fool.com/investing/general/2013/10/20/10-perks-congress-has-that-you-dont.aspx
http://www.factcheck.org/2015/01/congressional-pensions-update/
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
Sent from my iPhone using Tapatalk
What specifically do you like about the Fair Tax?
I admit, it's been a while since I read the Fair Tax book (and it may have changed), but I was VERY disappointed with the kick-backs (something called pre-bates???) that were given to cover some minimum cost of living. What in the hell is wrong with a pure consumption tax (National Sales Tax, zero business tax) with zero kick-backs? Yeah, a bit regressive, but that should be incentive to make more money so just living isn't all you can afford to do; AND, the more you make, the more tax you pay as a part of living a great life.
I do like the Fair Tax better than this joke the Republicans are pushing through currently, so I wish they wouldn't have squandered this opportunity (once in a generation) to overhaul the federal revenue system.
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The states that have/had FT had a budget surplus. To me, that's a (H)UGE selling point.
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One word, cryptocurrency
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
Capital losses are deductions against gains. AFAIK large medical expenses are still deductible/
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
Capital losses are deductions against gains. AFAIK large medical expenses are still deductible/
I heard on a fake new network that the consolidated plan allows teacher school supply deductions, medical deductions, educational deductions, and one more major deduction item.
Sent from my SM-G930V using Tapatalk
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
Capital losses are deductions against gains. AFAIK large medical expenses are still deductible/
I heard on a fake new network that the consolidated plan allows teacher school supply deductions, medical deductions, educational deductions, and one more major deduction item.
Sent from my SM-G930V using Tapatalk
The reason I ask is that I normally write off about 20,000 miles a year for work. Just wondering if that will be going away
Sent from my iPhone using Tapatalk
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
Capital losses are deductions against gains. AFAIK large medical expenses are still deductible/
I heard on a fake new network that the consolidated plan allows teacher school supply deductions, medical deductions, educational deductions, and one more major deduction item.
Sent from my SM-G930V using Tapatalk
The reason I ask is that I normally write off about 20,000 miles a year for work. Just wondering if that will be going away
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No! That is a legitimate business of expense, cost of doing business.
Only personal expenses are changing but the standard deduction goes up WAY MORE THAN MOST WOULD EVER HAVE IN PERSONAL DEDUCTIONS. oops. so most will pay less. The standard rate is going down and a lot of "methods" to avoid taxes for those that have more money and make more money and make money using every way possible to avoid taxes, well a lot of those methods are going away.
I get creamed. No clark, not in that way.
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
Sent from my iPhone using Tapatalk
What specifically do you like about the Fair Tax?
I admit, it's been a while since I read the Fair Tax book (and it may have changed), but I was VERY disappointed with the kick-backs (something called pre-bates???) that were given to cover some minimum cost of living. What in the hell is wrong with a pure consumption tax (National Sales Tax, zero business tax) with zero kick-backs? Yeah, a bit regressive, but that should be incentive to make more money so just living isn't all you can afford to do; AND, the more you make, the more tax you pay as a part of living a great life.
I do like the Fair Tax better than this joke the Republicans are pushing through currently, so I wish they wouldn't have squandered this opportunity (once in a generation) to overhaul the federal revenue system.
@Doug hit on the pension issue. It's far and above what they earned.
As far as the "Joke the Republicans are pushing through". The entire tax code is a joke which was perpetrated by both dems and repubs since 1942. If someone was to start fresh with a tax code to a country, who would invent something as ridiculous as the US tax code?
Something like the Fair Tax makes the US a tax haven for corporations. It also allows companies to focus on their businesses instead of their tax position. Corporations spend billions trying to save billions in taxes. Hell, even in IT when I do my budget, I have to make decisions on what technologies to use based on Captial Expenses vs. Operating Expenses.
Under the Fair Tax, everyone pays taxes. Rich, middle, poor, drug dealers, criminals, visitors to the US. Everyone. The "pre-bates" are to help the poor offset paying the tax because they don't make enough money to pay taxes.
A simple tax code will NEVER exist whether it's the Fair Tax, flat tax, etc. Why? Congress will never let go of their most powerful power of the people. Eliminate the IRS - power gone. Also the entire tax industry would be gone which means there are a lot of people that have to learn new skills.
Not saying the Fair Tax is the answer but it's lightyears ahead of what we have today.
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
Capital losses are deductions against gains. AFAIK large medical expenses are still deductible/
I heard on a fake new network that the consolidated plan allows teacher school supply deductions, medical deductions, educational deductions, and one more major deduction item.
Sent from my SM-G930V using Tapatalk
The reason I ask is that I normally write off about 20,000 miles a year for work. Just wondering if that will be going away
Sent from my iPhone using Tapatalk
No! That is a legitimate business of expense, cost of doing business.
Only personal expenses are changing but the standard deduction goes up WAY MORE THAN MOST WOULD EVER HAVE IN PERSONAL DEDUCTIONS. oops. so most will pay less. The standard rate is going down and a lot of "methods" to avoid taxes for those that have more money and make more money and make money using every way possible to avoid taxes, well a lot of those methods are going away.
I get creamed. No clark, not in that way.
yeah, the crew making >$200k (Big Dave, that's more than $200K) get creamed in Georgia. Not being able to deduct state income tax is a huge impact, even with a doubled standard deduction; however, a GA Rep put in terms that made a lot of sense to me: Why should a person making $200K in a low tax state pay more in income tax to the Feds than a person making $200K in a high tax state?
After hearing that Rep, I completely agreed...the folks in low and high tax states get the same Federal support...so why should someone in a high tax state pay less for it. (Don't make me get out the +/- chart of Federal Revenue vs Federal Expenses by state and governing party.)
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
Sent from my iPhone using Tapatalk
What specifically do you like about the Fair Tax?
I admit, it's been a while since I read the Fair Tax book (and it may have changed), but I was VERY disappointed with the kick-backs (something called pre-bates???) that were given to cover some minimum cost of living. What in the hell is wrong with a pure consumption tax (National Sales Tax, zero business tax) with zero kick-backs? Yeah, a bit regressive, but that should be incentive to make more money so just living isn't all you can afford to do; AND, the more you make, the more tax you pay as a part of living a great life.
I do like the Fair Tax better than this joke the Republicans are pushing through currently, so I wish they wouldn't have squandered this opportunity (once in a generation) to overhaul the federal revenue system.
@Doug hit on the pension issue. It's far and above what they earned.
As far as the "Joke the Republicans are pushing through". The entire tax code is a joke which was perpetrated by both dems and repubs since 1942. If someone was to start fresh with a tax code to a country, who would invent something as ridiculous as the US tax code?
Something like the Fair Tax makes the US a tax haven for corporations. It also allows companies to focus on their businesses instead of their tax position. Corporations spend billions trying to save billions in taxes. Hell, even in IT when I do my budget, I have to make decisions on what technologies to use based on Captial Expenses vs. Operating Expenses.
Under the Fair Tax, everyone pays taxes. Rich, middle, poor, drug dealers, criminals, visitors to the US. Everyone. The "pre-bates" are to help the poor offset paying the tax because they don't make enough money to pay taxes.
A simple tax code will NEVER exist whether it's the Fair Tax, flat tax, etc. Why? Congress will never let go of their most powerful power of the people. Eliminate the IRS - power gone. Also the entire tax industry would be gone which means there are a lot of people that have to learn new skills.
Not saying the Fair Tax is the answer but it's lightyears ahead of what we have today.
holy crap, we are almost 100% aligned!
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making >$200k (Big Dave, that's more than $200K)
Hahahahahahahahahaha
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So, does this new plan completely eliminate all personal exemptions except child tax credit, and the 10,000 for property/state/local taxes?and does that mean all itemized deductions?
Capital losses are deductions against gains. AFAIK large medical expenses are still deductible/
I heard on a fake new network that the consolidated plan allows teacher school supply deductions, medical deductions, educational deductions, and one more major deduction item.
Sent from my SM-G930V using Tapatalk
The reason I ask is that I normally write off about 20,000 miles a year for work. Just wondering if that will be going away
Sent from my iPhone using Tapatalk
No! That is a legitimate business of expense, cost of doing business.
Only personal expenses are changing but the standard deduction goes up WAY MORE THAN MOST WOULD EVER HAVE IN PERSONAL DEDUCTIONS. oops. so most will pay less. The standard rate is going down and a lot of "methods" to avoid taxes for those that have more money and make more money and make money using every way possible to avoid taxes, well a lot of those methods are going away.
I get creamed. No clark, not in that way.
Thanks for the clarification
Sent from my iPhone using Tapatalk
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
@Doug hit on the pension issue. It's far and above what they earned.
A congressional pension is far and above what they earned? Explain that?
Their pension is the same as any other federal employee. Even if they served 30 years its still a fraction of their full salary when they actually served.
I’m not a congressional apologist, but you are off on their pension.
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making >$200k (Big Dave, that's more than $200K)
Hahahahahahahahahaha
Middle finger to the both of you.
Although, it was really funny.
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
@Doug hit on the pension issue. It's far and above what they earned.
A congressional pension is far and above what they earned? Explain that?
Their pension is the same as any other federal employee. Even if they served 30 years its still a fraction of their full salary when they actually served.
I’m not a congressional apologist, but you are off on their pension.
Deserving (earning) it is a matter of opinion. Personally I think they are there to represent the citizens that voted them in office. Then, go back to their districts and live under the laws they create. Serving in Congress was never intended to be a career. With term limits, their "pension" will be a small percent of their pay - as it should be. IMO, that is very different than a government employee that works a job that WAS meant to be a career. The average gubment employee doesn't have the power and influence over citizens.
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
@Doug hit on the pension issue. It's far and above what they earned.
A congressional pension is far and above what they earned? Explain that?
Their pension is the same as any other federal employee. Even if they served 30 years its still a fraction of their full salary when they actually served.
I’m not a congressional apologist, but you are off on their pension.
Deserving (earning) it is a matter of opinion. Personally I think they are there to represent the citizens that voted them in office. Then, go back to their districts and live under the laws they create. Serving in Congress was never intended to be a career. With term limits, their "pension" will be a small percent of their pay - as it should be. IMO, that is very different than a government employee that works a job that WAS meant to be a career. The average gubment employee doesn't have the power and influence over citizens.
I’m w ya on that. Do they deserve that they “earn”. Very much an opinion. Some work hard for the people. Others work hard at keeping themselves in power.
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Eliminate the IRS and implement The Fair Tax.
Institute congressional term limits and eliminate lifetime retirement. Congress shouldn't get anything that isn't available to the public for who they serve.
@Doug hit on the pension issue. It's far and above what they earned.
A congressional pension is far and above what they earned? Explain that?
Their pension is the same as any other federal employee. Even if they served 30 years its still a fraction of their full salary when they actually served.
I’m not a congressional apologist, but you are off on their pension.
Deserving (earning) it is a matter of opinion. Personally I think they are there to represent the citizens that voted them in office. Then, go back to their districts and live under the laws they create. Serving in Congress was never intended to be a career. With term limits, their "pension" will be a small percent of their pay - as it should be. IMO, that is very different than a government employee that works a job that WAS meant to be a career. The average gubment employee doesn't have the power and influence over citizens.
Double like.
Man, I really am impressed with your thinking..... & your Jeep.
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When you start doing your taxes and find out most of your deductions are no longer allowed thanks to this bill....
(https://i.ytimg.com/vi/NVQnuFFGzb4/maxresdefault.jpg)
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When you start doing your taxes and find out most of your deductions are no longer allowed thanks to this bill....
(https://i.ytimg.com/vi/NVQnuFFGzb4/maxresdefault.jpg)
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Yeah, I'm kind of curious what I'll end up with this year! You may have motivated me to dig in...and cry.
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I just dug into it becuase I was reading up on educational / unreimbursed job related expenses and looks like I was able to still deduct a good bit(as far as turbotax is advising). Looks like I am still going to owe so this will get shelved until the weekend before 4/15.
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When you start doing your taxes and find out most of your deductions are no longer allowed thanks to this bill....
Yup, I started looking at prelim numbers this weekend, ouch!!
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Yeah, the new tax hit me a bit in the deductions area, but I still was able to claim charitable donations, which I didn't expect.
I don't make as much as some of you, so the SALT stuff didn't cost me much there, but it was a slight hit (offset by a lower tax rate, though).
I don't pay mortgage interest, but it looks like it is still deductible. Correct?
So, it appears the only thing that the max deduction hurts is if you make a killing in a low tax state (>$166K), or live in a state with super high taxes. Otherwise, it doesn't seem to matter.
The form was no easier or less time consuming for me this year, since I have INT, DIV (incl foreign taxes paid), and charitable donations...all things that require filling out other forms.
Preliminarily it looks like, compared to 2017's taxes, the Trump tax plan saved me 4% overall. I expected it to save me nothing, so that's pretty nice. Tell your kids and grandkids, "Thanks." :) I still have to cut a check, so I won't be closing this out until April.
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I'm still waiting for brokerage 1099s to see what my return will be like. I have a decent amount of healthcare costs to deduct. Main deduction I lost was investment expenses.
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When you start doing your taxes and find out most of your deductions are no longer allowed thanks to this bill....
LOL, me too.
I just dug into it becuase I was reading up on educational / unreimbursed job related expenses and looks like I was able to still deduct a good bit(as far as turbotax is advising). Looks like I am still going to owe so this will get shelved until the weekend before 4/15.
Please explain...what section of deductions? I'm not seeing any exceptions but haven't dug in yet.
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My father put together a pretty good breakdown of the differences in deductions between 2017(old tax filing system) and 2018( new tax filing system) if anyone is interested shoot me a PM with your email address, and I’ll shoot it over to you. Unless I can figure out a way to embed a link here......
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My father put together a pretty good breakdown of the differences in deductions between 2017(old tax filing system) and 2018( new tax filing system) if anyone is interested shoot me a PM with your email address, and I’ll shoot it over to you. Unless I can figure out a way to embed a link here......
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Google docs
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How many here use an accountant? We’ve been going that route for about 8 or 9 years and really feel like it is money well spent. Thought we were going to owe the Fed last year but ended up getting a sizable refund. Cost averages about $500 but has been as high as $700.
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How many here use an accountant? We’ve been going that route for about 8 or 9 years and really feel like it is money well spent. Thought we were going to owe the Fed last year but ended up getting a sizable refund. Cost averages about $500 but has been as high as $700.
My wife is a CPA if anyone is looking....
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How many here use an accountant? We’ve been going that route for about 8 or 9 years and really feel like it is money well spent. Thought we were going to owe the Fed last year but ended up getting a sizable refund. Cost averages about $500 but has been as high as $700.
I've been using an Accountant for the last several years as well. I agree it's well worth it.
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I used to use an accountant. Then I realized my taxes were so easy/simple I moved to turbo tax, then I moved to a free 1040 excel file (excel1040) for fed and manual 500 for state. I also mail my forms in...old school (and free). I did send the excel1040 guy a few bucks every couple of years.