Quote:
Originally Posted by TiltonBB
That is not always the case. If your New Hampshire waterfront property is valued significantly higher than your 'primary residence' then THAT is where you will be most impacted. When you couple that with the $10,000 cap on real estate tax deductions the tax impact can be significant. Property taxes paid on personal use property, second homes and vacation homes, while still deductible as itemized deductions, are subject to the $10,000 limitation.
Yes, everyone knew the rules when they bought (or inherited) but the tax law change in 2017 made a big difference. For example: If the combined real estate taxes from your two homes is $30,000, the 2017 law change took away a $20,000 deduction. If you are in a 30% tax bracket that change cost you $6,000.
Yes, it's a nice problem to have (until you look at how the government spends "your" money!) but it still impacts a lot of people.
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The ''government'' spending the property taxes would be the local voters for the most part. We create the budgets, approve the budgets, and approve the raising of the taxes to cover the budget expenditures.
Pretty sure that President Trump, and many of the politicians that ran at that time were forthright with their feelings surrounding the SALT taxes. So while tax laws are always changing... anyone paying attention could see how that was going to go.