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(Topic ID: 175889)

Stock Market Traders?


By kpg

3 years ago



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    #5101 31 days ago

    No matter what, while taxes are "on sale", everyone should consider a "Roth conversion" based on your own personal situation.

    Pay the taxes today, to have your money grow and compound tax free for the rest of your life. My general rule of thumb is do as much as possible UP TO the max dollars in the 24% marginal tax bracket.

    Married filing joint, you can go all the way UP to $326,600. Remember, the 22% and 24% brackets replaced the 25% bracket that will come back into play, and 12% replaced the 15% bracket.

    Please look at the following tax bracket chart and then tell me WHO got a tax break. These brackets go back into effect in 2025. Only difference in the amounts from 2018 is the total dollars are higher as indexed for inflation.

    https://www.taxpolicycenter.org/briefing-book/how-did-tax-cuts-and-jobs-act-change-personal-taxes

    In addition, when they do ultimately raise the SS tax up to 100% of income when you get to retirement AND they have to create an excise tax of some sort to means test SS, to save it, you won't have to worry about those dollars.

    Ask yourself the question, "Will taxes be higher or lower in the future"? And "Can i pay the tax due from my non-ira accounts"?

    I can tell you this, the absolute MYTH that you will spend less money in retirement and thus be in a lower tax bracket is just not reality anymore.

    At least 8 out of 10 of my retirees spend as much or more in retirement, especially with entitled children and grand children these days.

    Plus, when you have a ROTH IRA it is NOT SUBJECT TO RMD'S at age 72 and gives you so much more flexibility and tax diversification.

    Ask yourself this question as taxes defer, with the IRS as you partner in your 401k's and IRA's, "What will tax rates be when i turn age 72 AND/OR when i actually need to start pulling $$ out for retirement"?

    Who knows right?

    Finally, you can always use the "back door Roth" if it does make sense for you.

    https://www.nerdwallet.com/blog/investing/backdoor-roth-ira-high-income-how-to-guide/

    There are GREAT calculators out there that can guide you on how to do it and what decisions to make and the compounded effect that those decisions have over decades.

    -3
    #5102 31 days ago

    This is very true but it reminds me of the old Steve Martin "how to be a millionaire and never pay taxes" where step one is to get a million dollars.

    The first assumption in this strategy is that you have enough cash reserves to last a year and not panic sell when things go south....

    The second is on top of that that you have enough left after your cash reserves to invest and make a fortune.

    In other words this is great advice if you are already "rich" by normal standards.

    Its no different then any other form of gambling... dont risk money you cant afford to lose so you dont panic or do something stupid. People fail at that daily.

    #5103 31 days ago
    Quoted from Elvishasleft:

    This is very true but it reminds me of the old Steve Martin "how to be a millionaire and never pay taxes" where step one is to get a million dollars.
    The first assumption in this strategy is that you have enough cash reserves to last a year and not panic sell when things go south....
    The second is on top of that that you have enough left after your cash reserves to invest and make a fortune.
    In other words this is great advice if you are already "rich" by normal standards.
    Its no different then any other form of gambling... dont risk money you cant afford to lose so you dont panic or do something stupid. People fail at that daily.

    Just not true, investing ANY amount, at the earliest age possible and receiving the benefit of the "power of compounding" is the ONLY way to go and get "rich", depending on your definition over the long term. PERIOD.

    The last part of your statement is actually TERRIBLE advice.

    You need to get yourself a "power of compounding" calculator. Just saying. Lol

    A better saying to live by is by Buffett, "Don't risk what you have and what you NEED, for what you don't have and what you don't need".

    #5104 31 days ago

    I understand all that... I was just referring to the advice in the article.

    "The idea that you keep a large cash cushion so you don't have a worry about seeing your stock portfolio tank. With six to 12 months worth of expenses in the bank, you decrease the risk you're going to panic sell to retreat to the relative safety of cash. You already enjoy the relative safety of cash. You invest - and ride out stock market storms - from a position of strength, not anxiety."

    #5105 31 days ago
    Quoted from sataneatscheese:

    You can't withdraw the money until you reach retirement age, but when you withdraw the money you do not pay income tax and you do not pay capital gains.
    W

    Not for much longer.

    #5106 31 days ago
    Quoted from iceman44:

    No matter what, while taxes are "on sale", everyone should consider a "Roth conversion" based on your own personal situation.

    Can you explain this to me? Or point me in the right direction? Is that were you move your 401k (paying the penalty) into a Roth?

    My assumption is that I should talk to a financial advisor before I would move forward?

    #5107 31 days ago

    "We have PINS to the left, PINS to the right"

    "Can't you feel 'em closin' in, honey
    Can't you feel 'em schoolin' around
    You got PINS to the left, PINS to the right
    And you're the only girl in town"

    IF it sells back to $34 range again you know what to do.

    #5108 31 days ago
    Quoted from Spyderturbo007:

    Can you explain this to me? Or point me in the right direction? Is that were you move your 401k (paying the penalty) into a Roth?
    My assumption is that I should talk to a financial advisor before I would move forward?

    No you don't pay a penalty by converting money from a traditional IRA to a ROTH IRA.

    You do pay "ordinary income tax rates" on the money you just converted in that year. Taxes are on sale this year.

    When you look at your COMBINED INCOME, wages, cap gains, etc., as a general rule of thumb for me and my clients, don't put yourself ABOVE the 24% marginal tax bracket.

    Meaning, you can have a COMBINED INCOME of up to $326,600 in 2020 before the NEXT dollars above that limit gets taxed at 32%

    The Biden plan proposes to RAISES TAXES at EVERY SINGLE INCOME LEVEL if you actually earn a living.

    #5109 31 days ago
    Quoted from iceman44:

    No you don't pay a penalty by converting money from a traditional IRA to a ROTH IRA.
    You do pay "ordinary income tax rates" on the money you just converted in that year. Taxes are on sale this year.
    When you look at your COMBINED INCOME, wages, cap gains, etc., as a general rule of thumb for me and my clients, don't put yourself ABOVE the 24% marginal tax bracket.
    Meaning, you can have a COMBINED INCOME of up to $326,600 in 2020 before the NEXT dollars above that limit gets taxed at 32%
    The Biden plan proposes to RAISES TAXES at EVERY SINGLE INCOME LEVEL if you actually earn a living.

    Gotcha, thanks! As for the taxes, can you use some of the conversion to pay the taxes? Meaning if I were to convert $100k, I'm assuming I need to write a $22k check for Federal taxes and then whatever my rate is to the state?

    I'm thinking it might not be smart to remove $100k from a 401k, only to reduce my investment in a Roth by $22k to pay taxes. Or maybe it would be....

    #5110 31 days ago
    Quoted from iceman44:

    "We have PINS to the left, PINS to the right"
    "Can't you feel 'em closin' in, honey
    Can't you feel 'em schoolin' around
    You got PINS to the left, PINS to the right
    And you're the only girl in town"
    IF it sells back to $34 range again you know what to do.

    ICE, because you deserve it.
    You give really good advice.

    #5111 31 days ago
    Quoted from iceman44:

    No you don't pay a penalty by converting money from a traditional IRA to a ROTH IRA.
    You do pay "ordinary income tax rates" on the money you just converted in that year. Taxes are on sale this year.
    When you look at your COMBINED INCOME, wages, cap gains, etc., as a general rule of thumb for me and my clients, don't put yourself ABOVE the 24% marginal tax bracket.
    Meaning, you can have a COMBINED INCOME of up to $326,600 in 2020 before the NEXT dollars above that limit gets taxed at 32%
    The Biden plan proposes to RAISES TAXES at EVERY SINGLE INCOME LEVEL if you actually earn a living.

    I believe he is talking about moving his 401k to a ROTH IRA. My understanding is this will have a penalty attached to it.

    #5112 31 days ago
    Quoted from Spyderturbo007:

    Gotcha, thanks! As for the taxes, can you use some of the conversion to pay the taxes? Meaning if I were to convert $100k, I'm assuming I need to write a $22k check for Federal taxes and then whatever my rate is to the state?
    I'm thinking it might not be smart to remove $100k from a 401k, only to reduce my investment in a Roth by $22k to pay taxes. Or maybe it would be....

    Yeah that's the other issue i just dealt with this AM.

    ALWAYS pay the tax bill from non ira assets to the extent those are available.

    Remember, your "effective rate" or average rate would be around 20% if you maxed it out. It's the "marginal rate" you want to make sure you don't exceed that 24%, thus giving the 20% average roughly.

    #5113 31 days ago
    Quoted from iceman44:

    Yeah that's the other issue i just dealt with this AM.
    ALWAYS pay the tax bill from non ira assets to the extent those are available.
    Remember, your "effective rate" or average rate would be around 20% if you maxed it out. It's the "marginal rate" you want to make sure you don't exceed that 24%, thus giving the 20% average roughly.

    Thanks. It's the tax bill that would prevent me from converting a chunk of my 401k. This year has been hard on our finances with my wife getting laid off for months and my business taking a shot in the ass.

    #5114 31 days ago
    Quoted from Monk:

    I believe he is talking about moving his 401k to a ROTH IRA. My understanding is this will have a penalty attached to it.

    NO PENALTY attached to that conversion regardless of when you do it or your AGE, OR regardless of how much money you make.

    Gotta take advantage of any "freebies" the government throws your way

    Also see my "back door Roth" discussion above.

    Some 401k plans allow an "in service" conversion.

    #5115 31 days ago
    Quoted from Spyderturbo007:

    Thanks. It's the tax bill that would prevent me from converting a chunk of my 401k. This year has been hard on our finances with my wife getting laid off for months and my business taking a shot in the ass.

    Then wait until you can in the future, sorry to hear that. But always keep it in the back of your mind for the future.

    But any little bit helps on that conversion to Roth.

    #5116 31 days ago
    Quoted from iceman44:

    NO PENALTY attached to that conversion regardless of when you do it or your AGE, OR regardless of how much money you make.
    Also see my "back door Roth" discussion above.
    Some 401k plans allow an "in service" conversion.

    Thanks for the clarification.

    #5117 31 days ago
    Quoted from iceman44:

    Then wait until you can in the future, sorry to hear that. But always keep it in the back of your mind for the future.
    But any little bit helps on that conversion to Roth.

    No need to apologize, such is life. I'm just happy we were able to power through it with our savings.

    #5118 31 days ago
    Quoted from BMore-Pinball:

    Depends on the reason you bought them in the first place.
    Gambling/Investing
    Sometimes a crash is a discount and reason to buy
    Sometimes a stock declines for a very good reason and it's time to sell

    Looking for long term (20 years). I have picked stocks in:
    5G
    Renewable energy
    Electrical vehicles
    Tech
    Assisted living (tools to help seniors), gonna have plenty hit that age in the near future
    Pot
    Pharma
    Entertainment
    SPAC
    Small amount in Airlines (waiting for the other shoe to drop before investing there)
    Waste Management

    #5119 31 days ago

    Is the Roth IRA loophole still open? It was as of a few years ago. You could contribute the max to a standard IRA then convert it to a Roth, regardless of income amount. SO the idea was to have a standard IRA open with nothing but pennies in it, so you didn't have anything to keep track of for tax purposes. Contribute to it at the max, let it clear and leave it uninvested. Then convert to your Roth. Voila.

    But I don't know if they ever closed that loophole.

    EDIT: lol, didn't see that was what Ice was talking about above. Guess it is still open.

    #5120 31 days ago
    Quoted from gambit3113:

    Is the Roth IRA loophole still open? It was as of a few years ago. You could contribute the max to a standard IRA then convert it to a Roth, regardless of income amount. SO the idea was to have a standard IRA open with nothing but pennies in it, so you didn't have anything to keep track of for tax purposes. Contribute to it at the max, let it clear and leave it uninvested. Then convert to your Roth. Voila.
    But I don't know if they ever closed that loophole.
    EDIT: lol, didn't see that was what Ice was talking about above. Guess it is still open.

    I’m really trying to understand this but having a hard time. Recommended reading for someone with very little savings who just started their 401k match for their employer? I’m in my 20s here and all I want to focus is on investing as much as humanly possible so I don’t end up a broke bastard in my 50s (like many of the men I’ve worked with)
    One of my coworkers worked 20 years for a company, took all the money upfront, skipped any of the savings options and now he’s got absolutely nothing at 56. No savings, no safety net and a body that’s getting old.

    I’ve worked with enough guys like this already and the experience really lit a fire. I don’t want to end up like that.

    My best investments so far have been my pins. Prices are ridiculous now! It’s surprising how it’s changed since 4 years ago when I first got in.

    #5121 31 days ago

    You will be set up very well in the future if you take action now like you are wanting to do. I tell my kids (16), when they start working to max out their 401k and Roth IRA, every year. Live on whats left over and they should be able to hit retirement much much earlier then the traditional working person if they so desire.

    You have TIME and the magic of compounding on your side. Take full advantage of it!

    Quoted from Isochronic_Frost:

    I’m really trying to understand this but having a hard time. Recommended reading for someone with very little savings who just started their 401k match for their employer? I’m in my 20s here and all I want to focus is on investing as much as humanly possible so I don’t end up a broke bastard in my 50s (like many of the men I’ve worked with)
    One of my coworkers worked 20 years for a company, took all the money upfront, skipped any of the savings options and now he’s got absolutely nothing at 56. No savings, no safety net and a body that’s getting old.
    I’ve worked with enough guys like this already and the experience really lit a fire. I don’t want to end up like that.
    My best investments so far have been my pins. Prices are ridiculous now! It’s surprising how it’s changed since 4 years ago when I first got in.

    #5122 31 days ago
    Quoted from Bospins:

    Things to buy based on my opinion and nothing else: anything that entertains you and keeps you healthy at home / working from home
    Zoom video communications
    Peloton
    Slack
    Netflix
    Teladoc
    Okta
    Amzn of course.

    Great advice, these have all been solid performers.

    #5123 31 days ago

    A lot of talk about back door IRA’s. One thing to keep in mind is that the rate is taxed at the level of all of your traditional IRA’s. If you have a lot of money in your IRA then this might not be as advantaged as you think. More info below.

    https://investorjunkie.com/retirement/backdoor-roth-ira-contribute-dont-qualify/

    #5124 31 days ago
    Quoted from flashinstinct:

    Hi guy really new to trading. What do you guys do when markets crash...keep the stocks you have and just buy more on sale or take stocks out and wait for the crash to happen and then buy? I'm debating on the right approach.
    Got caught up in NNOX...bought some shares at $18 and then $52 just to watch everything crash. I thought I had done some due diligence by looking into the board of directors and who they were. I'm still holding the shares.
    I have diversified in roughly 15 stocks. Don't want to stretch myself too thin.

    The key take away is to know when to Hold em and know when to Fold em or buy low and sell high. Good luck my friend

    #5125 31 days ago
    Quoted from cdnpinballer:

    The key take away is to know when to Hold em and know when to Fold em or buy low and sell high. Good luck my friend

    I'm wait for the second wave to hit at this point. Just stocking cash for the next few weeks and then go on a buying fenzy. Hopefully that plan will payoff

    #5126 31 days ago
    Quoted from Isochronic_Frost:

    I’m really trying to understand this but having a hard time. Recommended reading for someone with very little savings who just started their 401k match for their employer? I’m in my 20s here and all I want to focus is on investing as much as humanly possible so I don’t end up a broke bastard in my 50s (like many of the men I’ve worked with)
    One of my coworkers worked 20 years for a company, took all the money upfront, skipped any of the savings options and now he’s got absolutely nothing at 56. No savings, no safety net and a body that’s getting old.
    I’ve worked with enough guys like this already and the experience really lit a fire. I don’t want to end up like that.
    My best investments so far have been my pins. Prices are ridiculous now! It’s surprising how it’s changed since 4 years ago when I first got in.

    This is what i PM'ed you on April 22nd Frost.

    "Yep Frost, the whole thing is overblown BS!

    Even still, wait until this dust settles but if you are long term then you will do great.

    Look at Apple AAPL, Pinterest PINS, Trade Desk TTD and SHOP if it sells off further.

    PINS is going to go up tomorrow on the Snapchat earnings today."

    Don't get caught up in the day to day.

    Save what you can every single month, time is on your side, "power of compounding". Google and read about that concept and you will do great!

    Then have a game plan and understand the consequences of what you spend versus what you save.

    #5127 31 days ago

    Yo iceman44, do you think we will ever get SALT tax deductions back or do we think that genie will never get put back in the bottle?

    #5128 31 days ago
    Quoted from Spyderturbo007:

    Gotcha, thanks! As for the taxes, can you use some of the conversion to pay the taxes? Meaning if I were to convert $100k, I'm assuming I need to write a $22k check for Federal taxes and then whatever my rate is to the state?
    I'm thinking it might not be smart to remove $100k from a 401k, only to reduce my investment in a Roth by $22k to pay taxes. Or maybe it would be....

    Interesting paper about this that extrapolates both options.

    https://www.williamblair.com/-/media/Downloads/Insights/PWR-Assets/2018/WilliamBlair-RP_Roth-IRA-Conversions.pdf?as=1&la=en

    #5129 31 days ago

    Anyone who wants to learn about and needs help with choosing long term high growth stocks Ice was super helpful (again) and referred this subscription service a while ago here. Its like $24 a month. I subscribed and it changed the way I view investing. Not a day trading site but long term view.

    https://seekingalpha.com/checkout?service_id=mp_1180

    I also just spent money for this service that gives guidance on which way the market is headed.

    https://seekingalpha.com/checkout?service_id=mp_1201

    You can do trials on these. And check out Seeking Alpha. A lot of great info.

    #5130 31 days ago

    Battery day seems to be a bust for Tesla - at least market reaction. Took a bath b/c of it haha. well they have a tendency to bounce back with wild swings. I think next swing I'm out - putting it towards JJP 6!

    #5131 30 days ago

    Kinda having my mind blown by this backdoor Roth IRA tip. Excited and embarrassed I didn’t know about it.

    It’s like ordering off the not so secret menu for the first time.

    #5132 30 days ago
    Quoted from delt31:

    Battery day seems to be a bust for Tesla - at least market reaction. Took a bath b/c of it haha. well they have a tendency to bounce back with wild swings. I think next swing I'm out - putting it towards JJP 6!

    I watched it live and yeah it’s not the immediate gratification the market was hoping for it is exciting developments for long term success that just might keep Tesla in the lead. Today made me feel confident to stay long on the stock and ignore the swings except when it dips deep to buy more.

    #5133 30 days ago
    Quoted from Oaken:

    Kinda having my mind blown by this backdoor Roth IRA tip. Excited and embarrassed I didn’t know about it.
    It’s like ordering off the not so secret menu for the first time.

    Nothing to be embarrass about. It is kind of known but not really. Sadly, I can not really take advantage of it.

    #5134 30 days ago
    Quoted from DBLM:

    Yo iceman44, do you think we will ever get SALT tax deductions back or do we think that genie will never get put back in the bottle?

    Here you go. . And then see below. Oh the irony of it all!!!

    "Mr. Biden, Nancy Pelosi and Charles Schumer don’t agree on everything, but on this specific issue they speak with one voice: the $10,000 cap on deductions for state and local tax (better known as the SALT deduction) must go.

    The House of Representatives has already passed legislation removing the cap, allowing the amount of the deduction to rise. If the Senate turns blue in November, Democrats have promised to return to the issue. “I want to tell you this,” Senator Schumer said in July, “If I become majority leader, one of the first things I will do is we will eliminate” the SALT cap “forever.” It “will be dead, gone and buried.”

    "But there was one seriously progressive element, a single diamond in a lot of rough: the introduction of the SALT cap. Lifting it would therefore reverse one of the few good things about the 2017 bill. Almost 60 percent of the benefit of removal would go to the top 1 percent of households (of which 90 percent are white). For the superrich, the top 0.1 percent, repeal would make for an average tax cut of around $145,000 a year. In isolation, this change would be more skewed to the rich than the Republican tax bill as a whole."

    And further..............

    "By pushing for repeal of the cap, Democrats are leaving themselves wide open to criticisms of hypocrisy and opportunism. As Senator Michael Bennet, one of the few Democrats opposed to removing the SALT cap, pointed out to his Senate colleagues in October 2019: “We can say we are for a progressive tax code and for fighting inequality, or we can support the SALT deduction. But it is really hard to do both.” Alexandria Ocasio-Cortez also voted against repeal."

    #5135 30 days ago
    Quoted from pinnyheadhead:

    Anyone who wants to learn about and needs help with choosing long term high growth stocks Ice was super helpful (again) and referred this subscription service a while ago here. Its like $24 a month. I subscribed and it changed the way I view investing. Not a day trading site but long term view.
    https://seekingalpha.com/checkout?service_id=mp_1180
    I also just spent money for this service that gives guidance on which way the market is headed.
    https://seekingalpha.com/checkout?service_id=mp_1201
    You can do trials on these. And check out Seeking Alpha. A lot of great info.

    HIGHLY recommend Andres as at least a good guide and starting point for "growth" investing and I can tell you that i pay at least $15k a year for various Motley Fool research services and there is a lot of overlap, equities showing up on both of their "screens" etc.

    Andres has been about 30-35% cash in his model for quite some time and still crushing it performance wise as Pinny can attest to.

    For short term money use VGSH, 1-3 treasuries, the yield right now is about 1.6% and has virtually no "interest rate risk". In this environment i use no other bonds. Plus the expense ratio from Vanguard is only .05% compared to the comparable SHY, .15%, which is Ishares version. It currently yields about 1.4% and costs more and because of the brand it has twice the assets as the VGSH.

    Brad Thomas and iREIT is another GREAT resource for all things REIT's. It's about $500 per yr?

    #5136 30 days ago

    All you need to know about MAC

    #5137 30 days ago
    Quoted from DBLM:

    Keep in mind that Roth IRA's have income limits. Based upon income you may or may not be able to participate.[quoted image]

    I utilize the backdoor Roth contribution every year.
    For those that make too much to contribute to a tax advantaged IRA - A regular IRA contribution is taxed anyways and it's a no brainer to convert to a Roth

    #5138 30 days ago
    Quoted from BMore-Pinball:

    But there is a backdoor - you can contribute to a regular IRA and then convert to a Roth

    Yeah, but you get taxed at the rate of your traditional IRA's. I have been rolling my 401k's from various companies into my IRA so the tax consequences would be large for me.

    #5139 30 days ago
    Quoted from iceman44:

    Here you go. . And then see below. Oh the irony of it all!!!
    "Mr. Biden, Nancy Pelosi and Charles Schumer don’t agree on everything, but on this specific issue they speak with one voice: the $10,000 cap on deductions for state and local tax (better known as the SALT deduction) must go.
    The House of Representatives has already passed legislation removing the cap, allowing the amount of the deduction to rise. If the Senate turns blue in November, Democrats have promised to return to the issue. “I want to tell you this,” Senator Schumer said in July, “If I become majority leader, one of the first things I will do is we will eliminate” the SALT cap “forever.” It “will be dead, gone and buried.”
    "But there was one seriously progressive element, a single diamond in a lot of rough: the introduction of the SALT cap. Lifting it would therefore reverse one of the few good things about the 2017 bill. Almost 60 percent of the benefit of removal would go to the top 1 percent of households (of which 90 percent are white). For the superrich, the top 0.1 percent, repeal would make for an average tax cut of around $145,000 a year. In isolation, this change would be more skewed to the rich than the Republican tax bill as a whole."
    And further..............
    "By pushing for repeal of the cap, Democrats are leaving themselves wide open to criticisms of hypocrisy and opportunism. As Senator Michael Bennet, one of the few Democrats opposed to removing the SALT cap, pointed out to his Senate colleagues in October 2019: “We can say we are for a progressive tax code and for fighting inequality, or we can support the SALT deduction. But it is really hard to do both.” Alexandria Ocasio-Cortez also voted against repeal."

    Oh, the irony is strong. I am lucky that I got grandfathered in on the mortgage interest deduction cap when I bought my house in 2018 (started the process in 2017, so I got in under the wire) but the taxes are robust. We will see where this goes.

    #5140 30 days ago
    Quoted from iceman44:

    Here you go. . And then see below. Oh the irony of it all!!!
    "Mr. Biden, Nancy Pelosi and Charles Schumer don’t agree on everything, but on this specific issue they speak with one voice: the $10,000 cap on deductions for state and local tax (better known as the SALT deduction) must go.
    The House of Representatives has already passed legislation removing the cap, allowing the amount of the deduction to rise. If the Senate turns blue in November, Democrats have promised to return to the issue. “I want to tell you this,” Senator Schumer said in July, “If I become majority leader, one of the first things I will do is we will eliminate” the SALT cap “forever.” It “will be dead, gone and buried.”
    "But there was one seriously progressive element, a single diamond in a lot of rough: the introduction of the SALT cap. Lifting it would therefore reverse one of the few good things about the 2017 bill. Almost 60 percent of the benefit of removal would go to the top 1 percent of households (of which 90 percent are white). For the superrich, the top 0.1 percent, repeal would make for an average tax cut of around $145,000 a year. In isolation, this change would be more skewed to the rich than the Republican tax bill as a whole."
    And further..............
    "By pushing for repeal of the cap, Democrats are leaving themselves wide open to criticisms of hypocrisy and opportunism. As Senator Michael Bennet, one of the few Democrats opposed to removing the SALT cap, pointed out to his Senate colleagues in October 2019: “We can say we are for a progressive tax code and for fighting inequality, or we can support the SALT deduction. But it is really hard to do both.” Alexandria Ocasio-Cortez also voted against repeal."

    That article is very slanted in the last two paragraphs. There are many middle class families like mine in states like NY, NJ, Connecticut, Virginia, Maryland, California, and Florida that are getting shafted by double taxes on the income they are paying for state income tax, real estate property taxes, and vehicle property taxes. As a dink, double income and no kids, I have been shafted for over twenty years with a marriage penalty and the reduction of the SALT deduction was just another form for me to get screwed additionally. I am usually not one to complain about taxes either.

    #5141 30 days ago

    The other thing about the $24,000 standard deduction for married couples is that it takes away some of the incentive to buy a home. A large percentage of families can no longer deduct the interest they are paying on the mortgage because they stay below the standard deduction. The main thing that is keeping houses selling and values up is the historically low interest rates. If the interest rates go up, which they eventually will have to, then home sales and prices could be volatile.

    #5142 30 days ago
    Quoted from DCFAN:

    The other thing about the $24,000 standard deduction for married couples is that it takes away some of the incentive to buy a home. A large percentage of families can no longer deduct the interest they are paying on the mortgage because they stay below the standard deduction. The main thing that is keeping houses selling and values up is the historically low interest rates. If the interest rates go up, which they eventually will have to, then home sales and prices could be volatile.

    The challenge that you and I have is that we live in a very expensive region with a high price of admission. Sadly, it is only getting worse. Between government and tech this region has a fair amount of wealth and is priced accordingly.

    I don't know how it is in Chantilly but out here on the bay houses have sky rocketed. The bay market has always been strong but has gotten stronger as of late. The challenge out here is that for entry level waterfront homes, they normally are knock downs or complete gut jobs. Most of the homes are very dated and have not been kept up with, so the rehab is extensive. Throw in all the changes in zoning and building restrictions and it has become very slow and expensive to do construction out here.

    #5143 30 days ago
    Quoted from DBLM:

    The challenge that you and I have is that we live in a very expensive region with a high price of admission. Sadly, it is only getting worse. Between government and tech this region has a fair amount of wealth and is priced accordingly.
    I don't know how it is in Chantilly but out here on the bay houses have sky rocketed. The bay market has always been strong but has gotten stronger as of late. The challenge out here is that for entry level waterfront homes, they normally are knock downs or complete gut jobs. Most of the homes are very dated and have not been kept up with, so the rehab is extensive. Throw in all the changes in zoning and building restrictions and it has become very slow and expensive to do construction out here.

    There are so many new tech companies here where I am that were not here 20 years ago. A good portion of the people in my suburban neighborhood are in IT jobs and practically every new neighbor I have met in the last few years is in an IT job. I bought my house in 1997 and it is not far off from tripling in value.

    #5144 30 days ago
    Quoted from DCFAN:

    The other thing about the $24,000 standard deduction for married couples is that it takes away some of the incentive to buy a home. A large percentage of families can no longer deduct the interest they are paying on the mortgage because they stay below the standard deduction.

    But it's great if you've paid off your mortgage! I love not having to itemize deductions.

    #5145 30 days ago
    Quoted from mattosborn:

    But it's great if you've paid off your mortgage! I love not having to itemize deductions.

    Not really when I have a mortgage on another similarly valued property and state real estate taxes on two properties on top of state income tax on two salaries (my wife and I). I still have to itemize but I lose probably about $15000 in deduction amount. Besides, itemizing is very easy with turbotax.

    #5146 30 days ago
    Quoted from DBLM:

    Yeah, but you get taxed at the rate of your traditional IRA's. I have been rolling my 401k's from various companies into my IRA so the tax consequences would be large for me.

    Some people earn too much to contribute to a tax advantaged IRA, so they pay taxes on their IRA contribution anyways and there is not much of a tax it to roll it into a roth

    #5147 30 days ago
    Quoted from DCFAN:

    That article is very slanted in the last two paragraphs. There are many middle class families like mine in states like NY, NJ, Connecticut, Virginia, Maryland, California, and Florida that are getting shafted by double taxes on the income they are paying for state income tax, real estate property taxes, and vehicle property taxes. As a dink, double income and no kids, I have been shafted for over twenty years with a marriage penalty and the reduction of the SALT deduction was just another form for me to get screwed additionally. I am usually not one to complain about taxes either.

    But look who is hitting you? State and Local governments. Are you getting really awesome value from your state and local governments for the higher taxes you pay? Folks just don’t look at where the money goes and say “it’s a write off whatever“ or “I live in a higher cost area so I should pay $12k is reasonable for property taxes” and they move on. I feel if folks can’t write off the income And property taxes It makes local governments more responsible. Also Why should the federal Govt have to subsidize higher taxes From states or mortgage payments from owners for the area you chose to live in and the mortgage payment you chose to take on? I would much rather see the lower income folks get a Tax break then six figure households not being able to write off. If you are middle class and write off over $24k a year in income, property and Mortgage interest are you may not be middle class?

    Saying this in a nice non douche bag Anti Pinside way and full disclosure I was effected by the Tax change and had to pay more federal taxes because of it with capping my write offs, but I think think it’s fair.

    #5148 30 days ago
    Quoted from DCFAN:

    Not really when I have a mortgage on another similarly valued property and state real estate taxes on two properties on top of state income tax on two salaries (my wife and I). I still have to itemize but I lose probably about $15000 in deduction amount. Besides, itemizing is very easy with turbotax.

    Like I said, it's great if you don't have a mortgage. Paying off my house was top priority for me once I had the money to do so. Sure, I sold a lot of stock to do that, and I'm sure if I'd held that stock I'd have more money now (I don't care to do the math... what's done is done). But not having any debt for the last decade or so has been priceless. I sleep like a baby.

    #5149 30 days ago
    Quoted from pinnyheadhead:But look who is hitting you? State and Local governments. Are you getting really awesome value from your state and local governments for the higher taxes you pay? Folks just don’t look at where the money goes and say “it’s a write off whatever“ or “I live in a higher cost area so I should pay $12k is reasonable for property taxes” and they move on. I feel if folks can’t write off the income And property taxes It makes local governments more responsible. Also Why should the federal Govt have to subsidize higher taxes From states or mortgage payments from owners for the area you chose to live in and the mortgage payment you chose to take on? I would much rather see the lower income folks get a Tax break then six figure households not being able to write off. If you are middle class and write off over $24k a year in income, property and Mortgage interest are you may not be middle class?
    Saying this in a nice non douche bag Anti Pinside way and full disclosure I was effected by the Tax change and had to pay more federal taxes because of it with capping my write offs, but I think think it’s fair.

    It was the federal government that had been promoting taking on debt on homes and deducting interest and taxes. They decided to pull the rug out from under people. To me the American Dream of owning a home has been a little bit of a sham all along to keep the economy moving when most people would have more assets in the long run if they rented something modest and invested the difference for the long term.

    #5150 30 days ago
    Quoted from mattosborn:

    Like I said, it's great if you don't have a mortgage. Paying off my house was top priority for me once I had the money to do so. Sure, I sold a lot of stock to do that, and I'm sure if I'd held that stock I'd have more money now (I don't care to do the math... what's done is done). But not having any debt for the last decade or so has been priceless. I sleep like a baby.

    I was the same with paying off the house I live in. I have always been extremely conservative and that is why I was able to invest in a 2nd home after the primary home was paid off, and we even have been keeping our cars for over 15 years because we are that conservative.

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