Category Archives: Tax Issues

“Nightmare” Republican tax bill brings year-end chaos for homeowners

Homeowners across the country looked to battle the coming $10,000 cap on state and local tax deductions by paying their 2018 property taxes in advance. Now the IRS has announced that only property taxes that have been assessed can be deducted in 2017.

The announcement did little to clarify who can take a deduction now for 2018 taxes.The Service didn’t define what “assessed” means in this case, and with each taxing agency having its own dates and systems for property tax bills, confusion is the byword.

The New York Times and The Washington Post both provided windows to taxpayer angst over this.

The final word — for now — goes to homeowner Brian Lowit of Baileys Crossroads, VA, who wired a payment to his county and then heard that he might not get a deduction. As he said to the Post, “It’s a nightmare. I’m definitely frustrated, annoyed and irritated. The rush to get that bill done screwed everyone up. It’s insanity and it’s stupid.”

Write a massive tax bill in secret and hold no hearings on it. What could go wrong?

Could Trump tax bill trigger a housing crash?

Reducing or eliminating the deductions for state and local taxes won’t just cost some people money in terms of increased taxes. The Republican bills could also push down property values, attacking the most valuable assets many families have. As The New York Times reported,”An analysis of the Senate bill by Moody’s Analytics concluded that home… Continue Reading

ObamaCare tax prep requirements are catching subsidy recipients unaware

The Affordable Care Act made preparing and filing tax returns even more complicated last year (I know, you’d think that wasn’t possible) because of the gymnastics involved in running health insurance subsidies and credits through the tax code. Now we’re learning that thousands of people might lose their health insurance subsidies because they didn’t file… Continue Reading

Corporations say DOMA is a big tax hassle

I always say that everything’s about taxes. The current legal wrangling about gay marriage proves it once again. More than 200 companies have signed onto a brief filed with the Supreme Court saying that the Defense of Marriage Act has become an administrative hassle, forces them to discriminate against different classes of married employees, and… Continue Reading