I.R.S. Warns States Not to Circumvent State and Local Tax Cap
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I.R.S. Warns States Not to Circumvent State and Local Tax Cap
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Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#2> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions.
If they consider their taxes a charitable contribution I should be able to decide to not pay it.
I know a lot of charities I’d rather give money to then the government.
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#3> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions. If they consider their taxes a charitable contribution I should be able to decide to not pay it. I know a lot of charit…
Wait, property and state taxes are already deductible on federal 1040, right? So why are the states even doing this? The article is paywalled so surely I’m missing some info here.
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#4> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions. If they consider their taxes a charitable contribution I should be able to decide to not pay it. I know a lot of charit…
Wait, property and state taxes are already deductible on federal 1040, right? So why are the states even doing this? The article is paywalled so surely I’m missing some info here.
The deduction is capped at $10k starting in 2018.
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#5> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions. If they consider their taxes a charitable contribution I should be able to decide to not pay it. I know a lot of charit…
Wait, property and state taxes are already deductible on federal 1040, right? So why are the states even doing this? The article is paywalled so surely I’m missing some info here.
From the article:
> The I.R.S. warning comes in response to states, like New York, that have looked for ways to blunt the impact of a new $10,000 cap on the state and local tax deduction, known as SALT. The cap, which was included in last year’s $1.5 trillion Republican tax overhaul, hit predominantly Democratic, high-tax states hardest since it limits the amount of state and local sales, income and property taxes that residents can deduct from their federal taxes.
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#6> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions. If they consider their taxes a charitable contribution I should be able to decide to not pay it. I know a lot of charit…
Wait, property and state taxes are already deductible on federal 1040, right? So why are the states even doing this? The article is paywalled so surely I’m missing some info here.
Last year's tax reform put a cap on that, which is highly inconvenient to people living in high tax, high income or high property value states like California, New York, etc.
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#7> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions. If they consider their taxes a charitable contribution I should be able to decide to not pay it. I know a lot of charit…
> If they consider their taxes a charitable contribution I should be able to decide to not pay it
You still owe regular property taxes, with all the standard penalties for non-payments. What these laws do is give "municipal and county governments and school districts the legal authority to create special charitable accounts" and then let "local governments offer residents who contribute to the new accounts a nearly dollar-for-dollar property-tax credit, effectively turning their property tax bill, at least on paper, into a charitable contribution" [1].
Your contribution to the charitable account is voluntary. Your property-tax obligation is not.
[1] http://www.njspotlight.com/stories/18/05/06/new-law-lets-loc...
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#8"...The $10,000 cap was imposed as a way to offset some of the cost of other individual and business tax cuts.
The Treasury Department and the I.R.S. are worried that the workarounds could further balloon the cost of the tax cuts, which are projected to add more than $1 trillion to the national debt over a decade."
Describing this as likely to 'further balloon' the cost of tax cuts seems inaccurate and misleading - the cost remains precisely the same, it's an attempt by certain high-tax states to avoid a tax increase designed to partially offset the static cost.
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#9> New York recently began allowing taxpayers to convert local property taxes into charitable contributions, which are fully deductible from federal taxes. Other states, like New Jersey and Connecticut, have been moving forward with similar plans to reclassify state taxes as charitable contributions. If they consider their taxes a charitable contribution I should be able to decide to not pay it. I know a lot of charit…
https://www.yardbarker.com/nba/articles/bill_russell_once_le...
Charles Barkley:
"Bill Russell called me one time… He says, “Charles Barkley.” I said, “Yes, sir, Mr. Russell.” “You grew up in Alabama. Right?” I said, “Yes, sir.” He says, “Did you go to public school?” I said, “Yes, sir.” He says, “Did the cops ever come to your neighborhood?” I said, “Yes sir.” He said, “Any of the houses ever on fire and the firemen come?” I said, “Yes, sir.” He said, “I don’t want to see your black ass on TV complaining about your taxes anymore.” I says, “What do you mean?” He says, “So now that you got money you don’t want to help other people out, but when you were poor, other people took care of you.” And I says, “You know what, Mr. Russell, you will never hear me complain about my taxes again.”
And it was a very interesting lesson for me, because I do think rich people should pay more taxes. I’m blessed to be one of them, and we should pay more in taxes. I learned my lesson. I never complain about taxes.
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"I like to pay taxes. With them, I buy civilization" -- Oliver Wendell Holmes
Re: I.R.S. Warns States Not to Circumvent State and Local Tax Cap
#10"...The $10,000 cap was imposed as a way to offset some of the cost of other individual and business tax cuts. The Treasury Department and the I.R.S. are worried that the workarounds could further balloon the cost of the tax cuts, which are projected to add more than $1 trillion to the national debt over a decade." Describing this as likely to 'further balloon' the cost of tax cuts seems inaccurate and misleading - t…
Additionally, the CBO recently recalculated the long-term cost of the tax cuts to be $440 billion due to the changes in economic growth after the tax cuts came into effect. The NYT article is ignoring the more recent $440b April estimate in favor of citing the trillion dollar December estimate.
https://www.cbo.gov/publication/53651
https://www.investors.com/politics/editorials/trump-tax-cuts...