December 13, 2017 • Page 2 of 4
The Second-Home Scenario
A married couple has a primary residence in Malibu, California, and a second home in Lake Tahoe. The property tax on the Malibu home is $15,860, and $4,896 on their second home; they deduct $40,000 total in mortgage interest for the two homes; and give $50,000 to charity. Taxpayers got hit with higher bills in only three scenarios prepared by Steffen -- the Manhattan millionaires took a hit from both the House and Senate bills, and this well-off California couple would take a hit from the House bill. In this case, differences in mortgage deductibility and tax rates between the two bills played a role. The Small Business Owners This married couple with a small manufacturing business in Pittsburgh, Pennsylvania, has $300,000 in pass-through business income. Their deductible mortgage interest adds up to $6,000; their property tax is $8,600; and they give 5 percent of their income to charity. The Senate plan is better for these business owners. This couple would save about $500 under the House plan, but close to $23,000 in the Senate plan. That difference would narrow at higher income levels, said Steffen. The Suburban Family First « 1 2 3 4 » Next
A married couple has a primary residence in Malibu, California, and a second home in Lake Tahoe. The property tax on the Malibu home is $15,860, and $4,896 on their second home; they deduct $40,000 total in mortgage interest for the two homes; and give $50,000 to charity.
Taxpayers got hit with higher bills in only three scenarios prepared by Steffen -- the Manhattan millionaires took a hit from both the House and Senate bills, and this well-off California couple would take a hit from the House bill. In this case, differences in mortgage deductibility and tax rates between the two bills played a role.
The Small Business Owners
This married couple with a small manufacturing business in Pittsburgh, Pennsylvania, has $300,000 in pass-through business income. Their deductible mortgage interest adds up to $6,000; their property tax is $8,600; and they give 5 percent of their income to charity.
The Senate plan is better for these business owners. This couple would save about $500 under the House plan, but close to $23,000 in the Senate plan. That difference would narrow at higher income levels, said Steffen.
The Suburban Family
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