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Thread: Tax Changes

  1. #1

    Tax Changes

    So, I ran my 2016 taxes in a tax calculator that is based on the new tax law. The best I can determine is that I would have paid between 5% and 10% lower taxes with the new tax law.
    The link is below. You have to fill out the information that the interactive form requests.

  2. #2
    I will simply pay 3% less on all income over $19050 up to 77400 (end of 12% bracket). If I go up to that amount, which I plan to in order to convert to Roth at these low rates, it will save me about $1750 over doing the same without tax changes being passed.

  3. #3
    I know my taxes will go up next year because loss of SALT deduction means I will have to take standard deduction. I will reduce taxable income by making charitable distributions from my RMDs. Could refinance my existing mortage that has low payments of interest to make home repairs and deduct most of the interest and pay same monthly amount with higher interest deduction which could make my itemized deductions greater than the standard deduction.
    I expect more of my REIT dividends will be non taxable under 20% exclusion for qualified dividends which will make it tax efficient to increase REIT holdings. I can increase my AA in tech and financials whose long term growth as well as increased qualified dividends and buybacks will exceed my tax increase.

  4. #4
    First time thru the calculator I itemized, like I did for actual 2016 taxes. No mortgage and $19,114 in state and local taxes. Ouch, with no exemptions (not 65 yet) I might as well take the standard deduction - advantages of itemizing are canceled out. Under new law I would have paid 34,331 in taxes, taxed at 18% rate. On my actual 2016 taxes, if I don’t include the foreign tax credit (since not part of calculator), taxes were 30,828 at 16% rate. So federal taxes would have been $3,503 higher under the new law.

    Note: In 2016 I sold a small rental property and so this will not be happening going forward (will put off ROTH conversions and do what it takes to keep taxes down).


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