Tax Cuts and Jobs Act

panamaican said:
Still having to think this through but it's really going to depend on how they plan to cut spending. Hmm, I'm wondering exactly how the pass through rule affects LLC's set up solely for real estate acquisition. Might make it easier to convince my clients to set them up.
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Why do they oppose? It is standard procedure with my crowd. Most friends an I even have their business rent the building from the LLC also own even if owner occupied.
 
woodguyatl said:
Why do they oppose? It is standard procedure with my crowd. Most friends an I even have their business rent the building from the LLC also own even if owner occupied.
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Depending on the state they probably don't want to pay the LLC fee or state tax. That's the only reason why I could see someone not wanting to create one.
 
Rational Poster said:
tbh, the estate tax generates so little revenue and has been so neutered, we're better off just getting rid of it to appease the cry babies and then tax them somewhere else.
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The people lobbying most against elimination are estate planners/attorney's and farmers not the uber wealthy.
 
Revolver said:
Depending on the state they probably don't want to pay the LLC fee or state tax. That's the only reason why I could see someone not wanting to create one.
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Interesting, the LLC fee in GA is $20. All done online. Does require any additional small insurance policy as well I guess.
 
woodguyatl said:
The people lobbying most against elimination are estate planners/attorney's and farmers not the uber wealthy.
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The estate tax effects less than 1% of farmers. (0.5-0.6% of farms)

Rich people are using farmers as scapegoats and pulling on your heartstrings, it's just not true.
 
PolishHeadlock said:
Also only real estate taxes are deductible instead on income and sales and use taxes.
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That's garbage. I really hope none of this passes. It hurts any middle to upper class taxpayers from states that pay high state taxes.
 
kpt018 said:
Definitely true for some. My big issue with it is it actually hurts some middle and upper middle class folks, does nothing for low income earners and the vast majority of cuts go to corps and large estates.

We know why the morally corrupt GOP wants this but it's a fucking dumpster fire.
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the child credit was raised substantially

they are the only ones that get that credit, so how exactly is this not helping the low income?
seeing as they don't own homes, or generally itemize, i'm failing to see how the larger standard deduction doesn't immediately help them as well.

have you ever looked at IRS Publication 15?
edit: I completely see your points regarding the middle class tho, respect
 
CPA Revo coming in clutch in this thread, respect
 
Rational Poster said:
The estate tax effects less than 1% of farmers. (0.5-0.6% of farms)

Rich people are using farmers as scapegoats and pulling on your heartstrings, it's just not true.
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I agree, except that I think a lot of farmers don't totally understand the tax and are involved in organizations that pay lobbyists to have it repealed.
 
HunterSdVa29 said:
the child credit was raised substantially
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That is nonrefundable, so if they aren't paying tax they don't benefit from the raised amounts.

they are the only ones that get that credit, so how exactly is this not helping the low income?
seeing as they don't own homes, or generally itemize, i'm failing to see how the larger standard deduction doesn't immediately help them as well.
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For most of them it's because they pay little or no tax to begin with.

have you ever looked at IRS Publication 15?
edit: I completely see your points regarding the middle class tho, respect
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What about it do you want to discus? Payroll taxes are one of those regressive taxes that hit lower income earners harder.

And yeah dude, thanks. I don't see the justification for hurting some middle class folks. In my mind that should be off the table.
 
kpt018 said:
That is nonrefundable, so if they aren't paying tax they don't benefit from the raised amounts.



For most of them it's because they pay little or no tax to begin with.



What about it do you want to discus? Payroll taxes are one of those regressive taxes that hit lower income earners harder.

And yeah dude, thanks. I don't see the justification for hurting some middle class folks. In my mind that should be off the table.
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Are you referring to FICA for hitting low income earners harder? cuz I'd agree on that due to the base 7.65%, but if people make little money and claim even 1 exemption there's a good chance they don't even pay into taxes, none the less get it all back and then some in credits/deductions if they do
 
woodguyatl said:
I agree, except that I think a lot of farmers don't totally understand the tax and are involved in organizations that pay lobbyists to have it repealed.
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Special interests are also almost definitely pushing them to do so.
 
HunterSdVa29 said:
Are you referring to FICA for hitting low income earners Harder? cuz I'd agree on that due to the base 7.65%, but if people make little money and claim even 1 exemption there's a good chance they don't even pay into taxes, none the less get it all back and then some in credits/deductions if they do
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Yes, that's what I was referring to and true for income taxes (but not FICA/payroll).
 
I didn't see it, did they alter the continuing education or Hope credits?
 
It's not nearly as bad as I expected, but it still sucks. Particularly phasing out the estate tax.
 
HunterSdVa29 said:
I didn't see it, did they alter the continuing education or Hope credits?
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Don't think they did anything to these or any credits tbh outside of the child tax credit (which they haven't indicated if it gets phased out for higher earners)
 
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Lubaolong said:
Estate tax would kick in at $11.2 million, up from $5.49 million, but it would be fully repealed as of 2024.

The Alternative Minimum Tax (AMT) and the Death Tax will be both be repealed, the latter by 2024.
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<GinJuice>

I'll be able to leave a usable farm to my children!
 
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