Principles of Financial Planning and Home Ownership

Many existing homeowners discovered after purchasing their homes that the federal government suddenly changed the rules and it negatively affected their financial situation! When the tax legislation, enacted in late 2017, was passed and enacted, some homeowners in about 20 states realized they would likely have to pay more federal income taxes. This is generally known as SALT, or state and local taxes. It limited the amount they could deduct, from income taxes, for these payments, to a maximum of $10,000. In states and localities with higher taxes, the combination of state income taxes and real estate taxes exceeded significantly this Vault! Where I live, on the north shore of Long Island, residents were generally severely affected. With that in mind, this article will briefly attempt to consider, examine, discuss, and revise the various reasons many believe this is unfair taxation.

1. Is it a coincidence that those most affected live in states that did not vote for this president? Most of the states, with the highest tax costs, are the largest, providing, in general, the greatest degree of public services, etc. Most of these are predominantly occupied by Democratic voters, and President Donald Trump lost the election. Plus, these areas typically receive the lowest return on your federal taxes—paid! A middle and/or upper-middle class homeowner in the New York metro area often found themselves paying much more because they lost many of their previous itemized deductions! Is it fair, for certain areas, to have to pay a lot for the rest of the area and receive even less for it?

two. Talk to a professional accountant: If you don’t normally use an accountant to prepare and/or file your taxes, it may make sense to schedule a meeting on a regular basis to discuss whether you should use certain tax-related strategies. , plan or take certain specific actions to get the best and best benefits. The more you know and plan ahead, the better off you usually are!

3. Your real estate and financial goals: Your goals, regarding real estate and where to reside, should go hand in hand with your overall financial goals, priorities and objectives! The wisest people should proceed with a well-developed and well-considered overall financial plan!

Are you prepared to make changes, if/when necessary, in a timely and well-considered manner? Ready to improve your overall financial picture?