OT 15: New Year, New Poo

[troyguitar]

Depends on the price. When you're in a $150k place, the standard deduction will pretty much always be better now but in a $1.5M place it would have likely still helped to itemize.

The new system actually helps home owners in most of the country where housing is still affordable. The higher standard deduction will reduce our federal income tax liability by quite a bit.

I should look into it a bit more, but I recall that the amount I wrote off last year on our $320k house would have been negated by the standard deduction.

Now that we're in our $420k house, that might be a bit different.

You'd need to be paying over $2k per month in interest, that's only Pay Area housing.

[goIftdibrad]

even you living the DINK life on you halfmillion dollar palace likly wont make over 24k dollars in interest payments that would result in itemizing to clam the deduction. (24k isthe new married std deduction IIRC)

We'll be close between interest and property taxes. Probably won't exceed

there is also some new upper limit on what you can claim, like 750k. So you can't be a rich and buy a 2 million house on credit and write off 80k in interest every year.

FWIW, even last year we claimed using the standard deduction with potfiller palace. house cost 308 to built, 20% down, 3% interest...you do the math. Cliffs: we paid less than 12k in interest and taxes combined.

[dubshow]

Don't remember, I want to say $1400

that is fucking hilariously cheap for your area. My fucking airboat land mortgage for pot filler palace is over 1400/month

#metoo, but my airboat poverty shack was a full $100k less than your palace.

dem downpayments mean note amount comparison are useless.

[ChrisoftheNorth]

We'll be close between interest and property taxes. Probably won't exceed

there is also some new upper limit on what you can claim, like 750k. So you can't be a rich and buy a 2 million house on credit and write off 80k in interest every year.

FWIW, even last year we claimed using the standard deduction with potfiller palace. house cost 308 to built, 20% down, 3% interest...you do the math. Cliffs: we paid less than 12k in interest and taxes combined.

I get raped on property taxes (~$8k-$10k), which ends up being nice for the write-off when combined with interest. I may be over $24k next year (first full year of new house payments).

Yes, I'm an idiot. No, I don't care what you think.

[dubshow]

Also can't claim the interest payments on taxes.

A) that never 'saved' people much money altho white ppl are all like "MAH INTEREST DECUCTION!!!!11!1111!!!!!eleven!!"
B) No one really qualifies with the new tax plan; the vast majority of americans will be living that standard deduction lyfe.

Im looking at the new "standard deduction" like

but the amount of taxes collected is still too fucking high. Just simplify it all with a low flat tax and nearly zero deductions.

[dubshow]

Its like no one read the new tax shit for 2018 taxes....

https://www.marketwatch.com/story/how-t ... 2018-02-05

re: prop tax

there is not much opportunity for gamesmanship with deductions for real property taxes. The only way you could potentially deduct more than $10,000 (or $5,000 if you use married filing separate status) is if you own a home that is used partially for business (for example, because you have a deductible office in the home) or partially rented out (for example the basement of your main residence or a vacation home during part of the year). In those situations, you could deduct property taxes allocable to those business or rental uses on top of the $10,000 limit — subject to the rules that apply to deductions allocable to those uses.

[CorvetteWaxer]

Also can't claim the interest payments on taxes.

A) that never 'saved' people much money altho white ppl are all like "MAH INTEREST DECUCTION!!!!11!1111!!!!!eleven!!"
B) No one really qualifies with the new tax plan; the vast majority of americans will be living that standard deduction lyfe.

I "saved" quite a bit in the past, especially when rates sucked.

I haven't bothered to look at the new "plan" since I get screwed over so many ways on taxes these days I just know to bring lube.

[goIftdibrad]

that is fucking hilariously cheap for your area. My fucking airboat land mortgage for pot filler palace is over 1400/month

#metoo, but my airboat poverty shack was a full $100k less than your palace.

dem downpayments mean note amount comparison are useless.

one can make generalizations based on age.

We upgraded house but kept note close to the same. Many people upgrade house and keep putting 5% down buying as much house as they can like idiots and their note increases forever. I'm also building equity faster by putting 20% down so I'll be on the downswing of those 30yr interest payments sooner rather than later.

[goIftdibrad]

there is also some new upper limit on what you can claim, like 750k. So you can't be a rich and buy a 2 million house on credit and write off 80k in interest every year.

FWIW, even last year we claimed using the standard deduction with potfiller palace. house cost 308 to built, 20% down, 3% interest...you do the math. Cliffs: we paid less than 12k in interest and taxes combined.

I get raped on property taxes (~$8k-$10k), which ends up being nice for the write-off when combined with interest. I may be over $24k next year (first full year of new house payments).

Yes, I'm an idiot. No, I don't care what you think.

eh, i dont think you are an idiot, you at least went in eyes open to the situation. Most people cant say that.

[dubshow]

#metoo, but my airboat poverty shack was a full $100k less than your palace.

dem downpayments mean note amount comparison are useless.

one can make generalizations based on age.

We upgraded house but kept note close to the same. Many people upgrade house and keep putting 5% down buying as much house as they can like idiots and their note increases forever. I'm also building equity faster by putting 20% down so I'll be on the downswing of those 30yr interest payments sooner rather than later.

im an idiot and ball'ed out on my poverty palace.

[ChrisoftheNorth]

#metoo, but my airboat poverty shack was a full $100k less than your palace.

dem downpayments mean note amount comparison are useless.

one can make generalizations based on age.

We upgraded house but kept note close to the same. Many people upgrade house and keep putting 5% down buying as much house as they can like idiots and their note increases forever. I'm also building equity faster by putting 20% down so I'll be on the downswing of those 30yr interest payments sooner rather than later.

I can't imagine not putting 20% down. If you can't do that, you can't afford it IMO.

[dubshow]

I get raped on property taxes (~$8k-$10k), which ends up being nice for the write-off when combined with interest. I may be over $24k next year (first full year of new house payments).

Yes, I'm an idiot. No, I don't care what you think.

eh, i dont think you are an idiot, you at least went in eyes open to the situation. Most people cant say that.

here, buy my overpriced house in a bad time of year. I just bought another palace and now have 2 notes! :yolo:

[dubshow]

one can make generalizations based on age.

We upgraded house but kept note close to the same. Many people upgrade house and keep putting 5% down buying as much house as they can like idiots and their note increases forever. I'm also building equity faster by putting 20% down so I'll be on the downswing of those 30yr interest payments sooner rather than later.

I can't imagine not putting 20% down. If you can't do that, you can't afford it IMO.

PMI 4 life.

[ChrisoftheNorth]

I can't imagine not putting 20% down. If you can't do that, you can't afford it IMO.

PMI 4 life.

[troyguitar]

there is also some new upper limit on what you can claim, like 750k. So you can't be a rich and buy a 2 million house on credit and write off 80k in interest every year.

FWIW, even last year we claimed using the standard deduction with potfiller palace. house cost 308 to built, 20% down, 3% interest...you do the math. Cliffs: we paid less than 12k in interest and taxes combined.

I get raped on property taxes (~$8k-$10k), which ends up being nice for the write-off when combined with interest. I may be over $24k next year (first full year of new house payments).

Yes, I'm an idiot. No, I don't care what you think.

I just actually read the details and the cliffs are: If you pay more than $1000/mo in mortgage interest then you might have a reason to itemize. Between that and the $10k in state+local property+income taxes, you might actually hit the $24k standard deduction.

For some reason I thought that the mortgage interest deduction was eliminated entirely, but it's only been capped at $750k in mortgage debt. The combined state and local property+income tax deduction was capped at $10k, so you essentially need to be spending more than $14k/yr on less than $750k in mortgage debt to make use of itemization.

[troyguitar]

PMI 4 life.

If it gets you into a metro area with 10+% annual appreciation, it's worth paying PMI and getting the absolute biggest mortgage you can make the monthly payments on.

[dubshow]

also interesting. There are way less "affordable houses" available. Check chart in article.

https://www.marketwatch.com/story/this- ... 2018-12-12

We really had to buy "up" to not be in the same poverty shit. also was on house #2 at 27. Aint got $45k saved at 27.

[dubshow]

If it gets you into a metro area with 10+% annual appreciation, it's worth paying PMI and getting the absolute biggest mortgage you can make the monthly payments on.

stretch budget to get to a better place. Poverty palaces dont appreciate that much. they are always poverty.

[ChrisoftheNorth]

If it gets you into a metro area with 10+% annual appreciation, it's worth paying PMI and getting the absolute biggest mortgage you can make the monthly payments on.

That 10% annual appreciation is done. SoCal is showing signs of weakening, Nor Cal will be next. Metro areas are way overheated, now is NOT the time to buy a house with the assumption the value will go up forever. You cannot bank on that, and doing so will result in

[ChrisoftheNorth]

I get raped on property taxes (~$8k-$10k), which ends up being nice for the write-off when combined with interest. I may be over $24k next year (first full year of new house payments).

Yes, I'm an idiot. No, I don't care what you think.

I just actually read the details and the cliffs are: If you pay more than $1000/mo in mortgage interest then you might have a reason to itemize. Between that and the $10k in state+local property+income taxes, you might actually hit the $24k standard deduction.

For some reason I thought that the mortgage interest deduction was eliminated entirely, but it's only been capped at $750k in mortgage debt. The combined state and local property+income tax deduction was capped at $10k, so you essentially need to be spending more than $14k/yr on less than $750k in mortgage debt to make use of itemization.

Yea, I just did the math. We should be just over $24k next year.

[wap]

Oh, also speaking of mom, her WBC count rose enough for her to have chemo this week. Delayed by a week, but awesome that she was able to do it still. Hopefully she can hit the rest of the schedule of getting it every other week for the next month or two, and then she should be done if nothing comes up.

Good news!

[goIftdibrad]

A) that never 'saved' people much money altho white ppl are all like "MAH INTEREST DEDUCTION!!!!11!1111!!!!!eleven!!"
B) No one really qualifies with the new tax plan; the vast majority of americans will be living that standard deduction lyfe.

I "saved" quite a bit in the past, especially when rates sucked.

I haven't bothered to look at the new "plan" since I get screwed over so many ways on taxes these days I just know to bring lube.

i bet its not as much as you think even at cali rape prices.

1. its a deduction not a credit. This is important.... on my first house i did the math. I was single and the number was 5500 back then i think.

I got to itemize and deduct like 8k instead of 5500. so i got 2500 extra off my taxable income. which 'saved' me like a grand total of... 200 dollars in taxes. NOT EVEN ONE MONTH of interest payment.

2. Lets not forget its real money that was pissed away to the banking industry.

/rant on "MAH INTEREST PAYMENTS DEDUCTION!

[dubshow]

I can't imagine not putting 20% down. If you can't do that, you can't afford it IMO.

I did 8% down. Plus closing costs. I have no plans to go anywhere for a long while unless it's out of the state.

Taxes are $6k, it'll be interesting to see how things play out this year with the new standard deduction.

how does true poverty feel zil?

I did 5%.

[wap]

PMI 4 life.

[goIftdibrad]

I can't imagine not putting 20% down. If you can't do that, you can't afford it IMO.

I did 8% down. Plus closing costs. I have no plans to go anywhere for a long while unless it's out of the state.

Taxes are $6k, it'll be interesting to see how things play out this year with the new standard deduction.

Spoiler alert: you will take the standard deduction.