Posted by Cheng Ai settled!The US tax reform plan is finally finalized, affecting 9 aspects of your life!
- 1. Personal income tax:
Before tax reform:The affluent class with an annual income of more than US$50 has a tax of 39.6%
draft:The House version is proposed to be 39.6%, and the Senate version is proposed to be 38.5%
Confirmed version:The wealthy class dropped from 39.6% before the tax reform to37%.This is 1.5 percentage points lower than in the draft.
- 2. The amount of mortgage interest reduction or exemption:
Before tax reform: First in$ 100 millionThe loan interest can enjoy tax relief.
Draft version:The House of Representatives version proposes that for new buyers, the loan amount is$ 50 millionFor the following, loan interest can be reduced or exempted.The Senate remains unchanged.
Confirmed version:first$ 75 millionThe interest on the following loan amount can enjoy mortgage interest reduction or exemption.
- 3. State taxes& Local tax deduction: there is a limit!
Before tax reform:State tax and local tax deduction items,unlimited.For example, the homeowner can deduct the property tax in full
Draft version:stay the same
Confirmed version:The maximum deduction is$10,000, And did not completely cancel as previously said.The deductions include real estate tax, personal income tax and consumption tax.
- 4. PhD tuition exemption: a false alarm!
Before tax reform:Taxes and fees paid by American doctoral students are calculated on the basis of their work income, and the tuition fee exemption is not included in the calculation.
Draft version:The reduced tuition fees will also be taxed as part of the income.
Confirmed version:It remains unchanged, and tuition fees are not taxed.Like in capitals! - 5. Personal Alternative Minimum Tax AMT: again!
Before tax reform:To avoid excessive tax avoidance, few deductions are allowed, and personal allowances and state tax deductions are prohibited.
Draft version:Abolish the alternative minimum tax
Confirmed version:The personal alternative minimum tax is still retained, which is completely different from the cancellation mentioned in the draft, but the threshold will be adjusted to exclude annual salary lower than50 millionPersonal and100 millionTarget family.
(Alternative Minimum Tax (AMT), AMT applies to high-income taxpayers by setting limits on these benefits. This measure will affect nearly 500 million Americans!) - 6. Inheritance tax: keep, raise the threshold!
Before tax reform：Individuals with more than US$549 million and couples with US$1100 million will be expropriated 40%U.S. Federal Estate Tax.
Draft version:cancel.
Confirmed version:ReservedU.S. Federal Estate Tax, But the tax allowance will be doubled.Previously, the outside world believed that the idea of cancellation was that the Trump family wanted to preserve the tens of billions of dollars in family property. - 7. U.S. corporate taxation: a sharp drop!
Before tax reform:The corporate tax rate is currently 35%
Draft version:Permanent cut in corporate tax, drastically reduced to 20%
Confirmed version:Corporate tax rate changed to21% - 8. Abolish the alternative minimum tax AMT for enterprises
- 9. Abolish Obama Health Insurance
The current policy will still be implemented in 2018 and is expected to be implemented in 2019
After the tax reform, which states are “the most cost-effective” to live in?
The income tax of each state is also part of the deduction. Now that there is a deduction cap of $1, it is a great news for states that do not have to pay the state income tax:
Washington, Nevada, Wyoming, South Dakota, Texas, Florida, HawaiiIn this way, the residents of these states can deduct the ten thousand yuan, all of which is reserved for real estate tax.
After the tax reform, which states will suffer the most?
The tax deduction is limited to $1 if you live in a high-tax area, such as:
California, New York, Texas, Will allow you to reduce a huge part of the deduction.
The Impact of the New Tax Reform on the Trend of the U.S. Real Estate Market
According to the National Association of Realtors, according to the new tax reform policy just introduced, if you live in a high-consumption area such as New York State or California, as long as your property tax credit exceeds $1, The final fee you have to pay will become even more.
In areas with high housing prices, under the influence of the New Deal, people's willingness to buy houses will be weakened. (Because in areas with high housing prices, home buyers often need larger loans to complete the purchase.) The National Association of Real Estate Brokers stated that in the motion released that day, the share price of home builders fell the most in a year!
The average house price in California will thereforeDown 8 to 12%, Which means that the value of a typical landlord’s house will lose between US$37,710 and US$56,550, and areas with high housing prices such as New York have also experienced significant declines.
The overall land price and land tax in the central region of the United States are relatively low. The return of manufacturing will stimulate the employment and real estate market in the central region. Many people living in the high land price areas in the east and west will see the advantages of employment and real estate in the central region and choose to go. Central.Therefore, it will promote the housing market there.
What is the impact of the new tax reform on owner-occupied housing:
- In the past, the amount of land tax paid and subtracted is now changed to a maximum of 1.States with high land taxes are obviously at a loss.
- Loan interest can be reduced up to 100 million of your loan amount before, which means that if you buy a more expensive house worth 200 million, then you can deduct the interest of the first 100 million loan from the tax.Now it’s down to 75, forFor buyers with high housing prices and high loans, there are also a lot of losses.
Farrah Wilder, chairman of the Federal Committee of the California Real Estate Association, said that the current bill has reduced the original real estate deductions and exemptions, which will mean that buying a house in the Bay Area will be difficult.
The impact of the new tax reform on housing trends in school districts:
- The impact on Co-op is not great, because generally such real estate itself has low land tax, and the housing loan does not exceed 75. Therefore, the land tax was used too much when deducting the deduction before and now, so according to the new tax reform The standard tax credit has increased, and for this part of the property owners, they may get greater tax concessions.
- Also for families who buy houses, school district houses are generally expensive in the United States, and the land tax is also high, so it will have an impact.However, we Chinese attach great importance to education. Even if there is a tax loss, school district housing is still popular. Many families may reconsider whether to rent or buy school district housing.
The impact of the new tax reform on moving:
Although in the bill disclosed yesterday, the details of this aspect have not been mentioned, but the housing tax reform plan of the House and Senate mentioned that it will limit the frequency of homeowners moving in the future, that is to say, increaseCapital gains tax on real estate, It seems imperative!
Before tax reform:You must have lived in your main home for at least 5 of the past 2 years to deduct most of your investment income tax from federal taxes.For singles, the deduction amount is $25; for couples, it is $50.
Draft version:In the past 8 years, you must have lived in the house you are currently buying for at least 5 years to deduct tax.To put it bluntly, the tax reform requires homeowners to extend the time they live in their houses. For investment hotspots, many people have multiple properties in their hands to support their houses.After the tax reform, this approach will only be overwhelmed by the capital gains tax. Therefore, in the future, the period for investors to hold a house will greatly increase, which is definitely not good news for investment.
Capital gains tax on real estate
According to U.S. law, if you rent a real estate, the income generated by the real estate will be treated as income from trade related to the U.S., and you can enjoy the same tax rate as U.S. residents according to the length of holding time; if it is held for a short period of time , Within one year, the capital gains tax is equivalent to the tax rate of personal income tax.If it is held for a long time, more than one year, the capital gains tax is 15%
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(Part of the content of this article comes from the network, edited and released after editing on this site)
