Release of final tax bill details

[ripper1]

Stepped up basis for heirs is still in effect.

Thanks, Audrey1

 

[USGrant1962]

The bill was signed this morning, it is now the law. They used a "pay-go waiver" to be able to sign it this year.

 

[ripper1]

I thought the idea was to sign in new year to avoid immediate cuts to medicare and medicaid. Am I right or wrong. Or is this avoid that per pay go.

 

[USGrant1962]

I thought the idea was to sign in new year to avoid immediate cuts to medicare and medicaid. Am I right or wrong. Or is this avoid that per pay go.

That is what the pay-go waiver does.

 

[ripper1]

That is what the pay-go waiver does.

Thanks, General

 

[pb4uski]

Since it is enacted, that means that companies will be scrambling to revised deferred taxes from now until earnings are released after year end.... if he had deferred signing until 2018 then the change would have been a 1Q2018 event.... a bit of coal for Christmas for corporate tax accountants.

 

[audreyh1]

The bill was signed this morning, it is now the law. They used a "pay-go waiver" to be able to sign it this year.

What was the paygo waiver?

OK - I see they routinely pass waivers to PAYGO. All this drama about delay to sign the bill! Easy - waiver!

 

[Cobra9777]

Since it is enacted, that means that companies will be scrambling to revised deferred taxes from now until earnings are released after year end.... if he had deferred signing until 2018 then the change would have been a 1Q2018 event.... a bit of coal for Christmas for corporate tax accountants.

If not signed until early January, it probably would have been considered a material subsequent event for 4Q 2017 reporting, which would have required disclosure and probably just as much work. Also, I'm guessing that most larger firms have had their 4Q deferred tax balances re-sized at the new rate for quite some time. Smaller firms, maybe not.

 

[Helena]

I've been trying to find this for days. Thanks.

What confused me about the fate of the extra over age 65 and/or blind standard deduction... a couple of important organizations [Tax Foundation and Forbes] initially had it wrong [falsely reporting it had been eliminated.] Brilliant and informative posters here set the record straight... THANK YOU !! Later Tax Foundation and Forbes corrected their error.

.

 

[gayl]

If not signed until early January

Wouldn't it have become law in 2017 anyway as it becomes law within 10 days of passage unless vetoed?

Reposting the easiest-to-research link I've found:

I was just going to post this link from the Washington Post, but I'm not sure if you need an account to see it, because I have an account.

http://apps.washingtonpost.com/g/documents/business/read-the-full-gop-tax-bill/2678/

 

[pb4uski]

Yes, but in an earlier post someone explained that Sundays, and perhaps even holidays don't count... so ex Sundays that would have made it into 2018.

 

[Sunset]

I would expect home prices overall to decline, because mortgages just effectively got more expensive, and most home buyers rely on a mortgage for the majority of the purchase price.

I also would expect higher end home prices to decline more with the $1M -> $750K limit reduction.

.....

I don't think it will have any effect.
Look at Canada, where house mortgages have never been deductible, and their home ownership is as high/higher than US, and their house prices are high as well.

 

[Sunset]

Good for DC and Arlington County, VA that are helping citizens lower their expenses. I haven't heard anything about other counties in VA, but in MD, Prince George's and Montgomery say "no can do" and Howard says "OK". It's up to each county and seems pretty hodgepodge overall. I think some locations just don't want to modify their systems to accept the prepayment which is not unreasonable.

Here in IL , it was on the news:
Lake county will accept 2 years prepayment of property taxes, but you have to do it in person and due to the crowds, they are thinking of working late Christmas Eve...

Cook County so far is sticking with the normal 6 month prepayment rule..

 

[MichaelB]

Here in IL , it was on the news:
Lake county will accept 2 years prepayment of property taxes, but you have to do it in person and due to the crowds, they are thinking of working late Christmas Eve...

Cook County so far is sticking with the normal 6 month prepayment rule..

Lake County is accepting prepayment of next year's property tax, and you can mail a check. Pre-Payments | Lake County, IL

 

[ERD50]

DC announced yesterday that they would accept prepayments for 2018 and provided a link to pay online on their website so I paid it.

I sure am glad we've had these discussions. Though I've heard about this, the thread has really put it on the front burner for me.

I ran the calculator, and my deductions will not exceed the standard deduction next year. I checked, and my county had a page detailing the pre-payment procedure. I plan to go to the county building in person next week, not going to trust the mail on this.

We have high property taxes here, so this will be a very significant savings for me. Glad I keep a decent buffer in the checking account. They also take CC and charge only 2.15% and I get 2% rewards, so that's another option, but It looks like I can swing it on the checking account.

On the radio this morning, they interviewed the Cook County (Chicago) Treasurer - they are working overtime with all the pre-payments. Quite a few multi-multi million $ homes in the ritzy suburbs in Cook County along the North Shore, so some of these annual tax bills are higher than many peoples total home values.

-ERD50

 

[ERD50]

Here in IL , it was on the news:
Lake county will accept 2 years prepayment of property taxes, but you have to do it in person and due to the crowds, they are thinking of working late Christmas Eve...

Cook County so far is sticking with the normal 6 month prepayment rule..

Are you sure about Christmas Eve? That's a Sunday!

I cross posted with you, but at least on the Lake County, IL website, it says you can mail the prepayment, but I just don't trust it to get there on time.

https://www.lakecountyil.gov/539/Pre-Payments

Pre-Payments

Special Notes


Please note: The Treasurer's Office will be closed Dec 22nd & Dec 25th for the Christmas Holiday! ​

• Payments accepted for the next tax year.
• Amount can be no more than the present year taxes.
• December 1 - December 29 only. We do not accept postmark.
• Pre-Payments must be in our office by 5pm on December 29th.
• Make checks payable to the Lake County Treasurer.
• Note Pin # on check.
• Indicate Pre-Payment on your Check, Cashiers Check or Money Order.
• Online bank checks, cash or ECheck are not accepted when Pre-Paying taxes.
• Check with your accountant before making payment.

Note: Refunds will be given only if the taxes calculate less than the Pre-Paid amount.
Mailing Address

Mail checks to:
Lake County Treasurer
18 N County Street
Room 102
Waukegan, IL 60085

* Always need to say Lake County, ILLINOIS, as there is a nearby Lake County, INDIANA - sometimes news reports don't specify, which is a pain.

-ERD50

 

[Sunset]

Are you sure about Christmas Eve? That's a Sunday!

I cross posted with you, but at least on the Lake County, IL website, it says you can mail the prepayment, but I just don't trust it to get there on time.

https://www.lakecountyil.gov/539/Pre-Payments

* Always need to say Lake County, ILLINOIS, as there is a nearby Lake County, INDIANA - sometimes news reports don't specify, which is a pain.

-ERD50

Well the news could have been wrong, I could have remembered it wrong, or the newscaster might have thought it was a funny joke.

I have double checked, and I think maybe the reporter was testing eggnog, as I only see the option to prepay 1 year property tax.
Whichever it was, if I lived in Lake County, IL , I would be dropping off my ? years of property tax in person.

As for not trusting mail, I just mailed a registered letter to FL, and the silly mail tracking reported nobody was at the office That office has lots of people in it. After lunch the reporting said the letter was left with someone
It was registered, how about a name

Once again I stupidly had to learn not to trust the mail...

 

[ocean view]

Since it is enacted, that means that companies will be scrambling to revised deferred taxes from now until earnings are released after year end.... if he had deferred signing until 2018 then the change would have been a 1Q2018 event.... a bit of coal for Christmas for corporate tax accountants.

Just another reason that I’m glad I’m retired!

 

[JoeWras]

Whichever it was, if I lived in Lake County, IL , I would be dropping off my ? years of property tax in person.

Agree. And get a receipt. Too bad you can't pay at the Annex. Instead, it is the main county building, one of the most fascinating places on this earth.
https://www.lakecountyil.gov/533/In-Person

 

[donheff]

I don't think I have seen links here to this Wall Street Journal tax calculator. Sorry if I missed it. It seems like a pretty good calculator, very easy to tweak various factors to try what if's.

 

[JoeWras]

I don't think I have seen links here to this Wall Street Journal tax calculator. Sorry if I missed it. It seems like a pretty good calculator, very easy to tweak various factors to try what if's.

Very useful, and it includes future law.

Reminder: if you get blocked, just google "Republican Tax Plan Calculator" and pick the wsj.com link.

 

[Tree-dweller]

I’ve read several posts where concern was expressed over exceeding the new $10k limit “for state and local property and income taxes”. Doesn’t that limit apply to prop taxes only? I just want to be sure my understanding is correct.
“Sec. 1303. Repeal of deduction for certain taxes not paid or accrued in a trade or business.
Current law: Under current law, an individual may claim an itemized deduction for State and local government income and property taxes paid. In lieu of the itemized deduction for State and local income taxes, individuals may claim an itemized deduction for State and local government sales taxes.
Provision: Under the provision, individuals would not be allowed an itemized deduction for State and local income or sales taxes, but would continue to be entitled to a deduction for State and local income or sales taxes paid or accrued in carrying on a trade or business or producing income.
Individuals would continue to be allowed to claim an itemized deduction for real property taxes paid up to $10,000.”

 

[donheff]

Very useful, and it includes future law.

Reminder: if you get blocked, just google "Republican Tax Plan Calculator" and pick the wsj.com link.

Let me try linking that link. Maybe it is a few characters different than the earlier ink.

 

[Travelfreek]

Refi apps on home loans will increase since HELOCs will no longer be deductible!

I learned that with bill passage, Home Equity Lines of Credit (HELOCs) will not be deductible beginning January 1st. That will create more refinancing and/or paying off of HELOCs.

 

[hesperus]

I don't think I have seen links here to this Wall Street Journal tax calculator. Sorry if I missed it. It seems like a pretty good calculator, very easy to tweak various factors to try what if's.

On this particular calculator, where would one put investment income (divvies, interest, etc.)?