Mine appraised at 334K when I refinanced a couple years back. Tax bill is around $2.8K.
We also don't have a sales tax in the majority of the state (a couple of tourist towns have a local sales tax to help pay for infrastructure that the tourists consume). We do get hit a bit harder than most on income tax if you're in the top couple of brackets. On Mon, Apr 1, 2019 at 5:34 PM Mike Hammett <af...@ics-il.net> wrote: > I purchased my house last year for $150k. It appraised for $200k. I pay > $6,200/year in property taxes. > > > > ----- > Mike Hammett > Intelligent Computing Solutions <http://www.ics-il.com/> > <https://www.facebook.com/ICSIL> > <https://plus.google.com/+IntelligentComputingSolutionsDeKalb> > <https://www.linkedin.com/company/intelligent-computing-solutions> > <https://twitter.com/ICSIL> > Midwest Internet Exchange <http://www.midwest-ix.com/> > <https://www.facebook.com/mdwestix> > <https://www.linkedin.com/company/midwest-internet-exchange> > <https://twitter.com/mdwestix> > The Brothers WISP <http://www.thebrotherswisp.com/> > <https://www.facebook.com/thebrotherswisp> > > > <https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> > ------------------------------ > *From: *"Bill Prince" <part15...@gmail.com> > *To: *"AnimalFarm Microwave Users Group" <af@af.afmug.com> > *Sent: *Monday, April 1, 2019 5:52:38 PM > *Subject: *Re: [AFMUG] OT: Tax cut my ass... > > > Wow. Your property taxes seem pretty high. Similarly, here in California, > property taxes are not a state tax at all, but a local tax to (primarily) > pay for schools. > > When we had our S corp, our CPA advised us to pay a salary, but only > enough to keep the IRS satisfied that we were paying salaries. So we each > took a token salary, and any excess revenue was taken as a "distribution to > shareholders". We paid minimal payroll taxes as a result. > > -- > bp > part15sbs{at}gmail{dot}com > > > On Mon, Apr 1, 2019 at 3:12 PM Ken Hohhof <af...@kwisp.com> wrote: > >> FWIW, property tax is typically a local tax, not a state tax. Illinois >> does not have a state property tax, and around 2/3 of property taxes go to >> fund school districts. >> >> >> >> I still live in the house we bought in 1976. We added two bedrooms and a >> family room after we had kids. It is not a mansion, but we live in DuPage >> County, in a town on one of the commuter rail lines. My property tax bill >> is around $19,000. More than some neighbors, less than others. Add the >> state taxes, and the $10,000 cap on SALT means I will be paying federal tax >> on at least $10K that I didn’t pay tax on last year and that I never >> received as disposable income. My wife died 2 years ago so my standard >> deduction is $12K not $24K. Yes that is higher than last year, but that’s >> cancelled out by the personal exemption going away. I have one kid who >> lives with me, but that doesn’t help me with taxes. >> >> >> >> Lots of people, especially seniors, are probably in the same situation as >> me. If you don’t have a large income so you can pay the substantially >> higher taxes, the federal government is essentially telling you that you >> have to move out of your house. And I think for a lot of people the >> withholding tax formulas didn’t properly account for this change. >> >> >> >> I think you are oversimplifying this as we’re finally sticking it to the >> state governments who spend and tax too much. In the case of property tax, >> it’s not even a state tax. And it’s not like property taxes were invented >> yesterday or during the administration of <fill in whatever President you >> didn’t like>. Like I say, I’ve lived here for over 40 years, paid property >> taxes the whole time, but I didn’t then also pay income tax on that money >> that I never got to spend. It’s not taking any money away from the state >> of Illinois, and it has no effect on the state’s spending or taxing >> decisions. It just takes several thousand dollars out of my wallet. >> >> >> >> The other thing I’m going to have to discuss with my accountant is the S >> Corp pass through change. It could be really stupid now for my company to >> be paying me a salary, maybe a distribution would be the way to go. I’m >> not sure. I always tried to do the right thing and pay myself a reasonable >> salary so the government could get their various payroll taxes, but maybe >> I’m being a moron. >> >> >> >> >> >> >> >> *From:* AF <af-boun...@af.afmug.com> *On Behalf Of *Steve Jones >> *Sent:* Monday, April 1, 2019 4:16 PM >> *To:* AnimalFarm Microwave Users Group <af@af.afmug.com> >> *Subject:* Re: [AFMUG] OT: Tax cut my ass... >> >> >> >> the state has their right to do as they please, but they dont have the >> right to do it on the feds back. why arent the states offering credits on >> federal taxes? >> >> >> >> >> >> On Mon, Apr 1, 2019 at 2:29 PM Carl Peterson <cpeter...@portnetworks.com> >> wrote: >> >> Whatever happened to states rights? The states have a right to decide >> what level of service/taxation they like. What it BS is the federal >> government taxing you on money that you never made because it was taxed at >> the state level. >> >> >> >> On Mon, Apr 1, 2019 at 11:06 AM Steve Jones <thatoneguyst...@gmail.com> >> wrote: >> >> Im glad they dropped the SALT to 10 percent. I wish they would phase it >> out to zero. Force the states to get their houses in order, force people to >> make more sound decisions in both purchases and in whom they check off at >> the ballots. No more raising taxes and saying, its all good, you can write >> it off on your federal. >> >> >> >> On Mon, Apr 1, 2019 at 1:53 AM Forrest Christian (List Account) < >> li...@packetflux.com> wrote: >> >> One gotcha I found with my taxes (when doing the estimates for the >> extension) is that many preparers and tax software don't handle the >> pass-through entity deduction correctly. >> >> If you have a s-corp or a partnership or a LLC or similar which passes >> through it's income to you, then in many cases up to 20% of this can >> be written off regardless of what else is going on on your return. >> I.E. it's a separate deduction from either your standard or itemized >> deduction. >> >> I though I was getting hit really hard until I figured out that this >> hadn't been applied correctly. >> >> On Sun, Mar 31, 2019 at 8:32 PM Ken Hohhof <af...@kwisp.com> wrote: >> > >> > All state and local taxes (SALT) limited to $10K deduction so income >> tax, sales tax, and property tax. Trust me, it's not hard to exceed $10K >> in property taxes alone. Also property tax is typically local, not state, >> and in many areas is the primary means of funding public schools. >> > >> > Real estate tax on farmland used for crops and livestock is still 100% >> deductible. >> > >> > >> > -----Original Message----- >> > From: AF <af-boun...@af.afmug.com> On Behalf Of Bill Prince >> > Sent: Sunday, March 31, 2019 8:41 PM >> > To: af@af.afmug.com >> > Subject: Re: [AFMUG] OT: Tax cut my ass... >> > >> > Yeah, our taxes don't reach that threshold. Mainly because we bought >> our house over 2 decades ago, and Prop. 13 keeps the valuation from rising >> too fast. >> > >> > >> > bp >> > <part15sbs{at}gmail{dot}com> >> > >> > On 3/31/2019 6:22 PM, Seth Mattinen wrote: >> > > On 3/31/19 5:03 PM, justsumname wrote: >> > >> The IRS website shows what changed. Tax rates did in fact go >> > >> down... but deductions were eliminated and/or capped lower and so >> > >> that's where the sticker shock is coming from. Itemized deductions >> > >> were capped at 10k for example, if I remember correctly. >> > >> >> > >> Two observations ... a very broad brush summary: >> > >> >> > >> --no longer are people with big mortgages being tax-subsidized by >> > >> people with smaller mortgages --no longer are States with low(er) >> > >> property taxes tax-subsidizing States with high(er) property taxes >> > >> >> > > >> > > >> > > State and local income tax is capped at $10k deduction. >> > > >> https://www.irs.gov/newsroom/tax-reform-brought-significant-changes-to >> > > -itemized-deductions >> > > >> > > >> > > Mortgages are capped at $750k for new mortgages after Dec 31, 2017. >> > > https://www.irs.gov/publications/p936 >> > > >> > >> > -- >> > AF mailing list >> > AF@af.afmug.com >> > http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> > >> > >> > >> > -- >> > AF mailing list >> > AF@af.afmug.com >> > http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> >> >> -- >> - Forrest >> >> -- >> AF mailing list >> AF@af.afmug.com >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> -- >> AF mailing list >> AF@af.afmug.com >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> >> >> >> -- >> >> Carl Peterson >> >> *PORT NETWORKS* >> >> 401 E Pratt St, Ste 2553 >> >> Baltimore, MD 21202 >> >> (410) 637-3707 >> >> -- >> AF mailing list >> AF@af.afmug.com >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> -- >> AF mailing list >> AF@af.afmug.com >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > -- - Forrest
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