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Tax Bill impact on housing market

Chalanachithram.com DB » New TF Industry Related » Archive through December 03, 2017 » Tax Bill impact on housing market « Previous Next »
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Anthamidhya
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Posted on Sunday, December 03, 2017 - 04:06 pm:       

NAR estimates prakaaram 10-15% padochu prices.
 

Jalsa
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Posted on Sunday, December 03, 2017 - 04:02 pm:       


Sri_anji:



DB pedhhalu already tolded long time ago not to factor property taxes , interest deductions while buying house.
 

Sri_anji
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Posted on Sunday, December 03, 2017 - 10:56 am:       


Jalsa:




is it a wrong time to buy a house? :-(
The best Odarpu
 

Jalsa
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Posted on Sunday, December 03, 2017 - 08:34 am:       

Home prices damaal antayemo. Damn.
 

Asdf
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Posted on Saturday, December 02, 2017 - 01:31 pm:       


Saarang:

I think it will be quick...Trump and this bill are hugely unpopular...there is very high chance that the pendulum will swing to far left in the next election cycle. My biggest concern is udyama netha Sanders taatha will be front runner now....Seattle liberal media intha violent reaction eppudu choodaledhu....i think they will foster a lot of anger at corporate tax cuts.





cool. warren is the bookie favorite from dems.

aa small margin tho lose aina states lo gelustaaru emo kada dems. which means, dems hold the edge ?
 

Scorpio
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Posted on Saturday, December 02, 2017 - 01:28 pm:       


Saarang:




Thammudu,

manaki impact ayye vanni okkasari Telugu lo cheppu...Mottam chavaalante baddakam
You do one more Mumbai, you lose Balochistan - NSA Ajit Doval
 

Saarang
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Posted on Saturday, December 02, 2017 - 01:22 pm:       

https://www.cnbc.com/2017/07/13/companies-have-big-plans-for overseas-cash--if-tax-reform-ever-happens.html

Companies have big plans for trillions in overseas cash — if tax reform ever happens

Companies holding $2.5 trillion in cash overseas who get a tax holiday from the government likely would use it to pay down debt, return cash to shareholders and do deals.
A Bank of America Merrill Lynch survey showed companies already making plans should President Donald Trump get tax reform pushed through Congress.

U.S. companies in line to bring home trillions in cash stored overseas would use the windfall primarily to pay down debt, return cash to shareholders and do deals, according to a survey released this week.

A central part of President Donald Trump's tax reform plan is to allow companies to repatriate profits earned abroad without having to pay the highest-in-the-world corporate tax rate. Estimates are that U.S. firms are holding about $2.5 trillion in cash abroad.

If tax reform is passed and the overseas cash gets taxed at a much lower rate, 65 percent of companies say they would pay down debt, according to the 2017 Bank of America Merrill Lynch corporate risk management survey. American business debt stood at $13.7 trillion through the first half of 2017, according to the Federal Reserve.

After paying down debt, the next most likely use at 46 percent is share repurchases, followed by mergers and acquisitions, and only then capital expenditures. [The figures do not add to 100 percent because BofAML instructed recipients to check all uses that would apply.]

Opponents of the repatriation plan worry that instead of dedicating the money to equipment, workers, and research and development, companies will spend most of the cash on shareholders. That's what happened the last time the government gave a break on overseas profits in 2004. Back then, the biggest recipients not only shoveled the cash back to investors but also in many cases cut jobs.

A tax reform proposal earlier this year from the Trump administration was short on details. Treasury Secretary Steven Mnuchin said then that the plan would include "a very competitive rate that will bring back trillions of dollars."

However, BofAML credit strategists say companies may not wait until the administration finally pushes its tax plan through Congress. Some companies may wish to use commercial paper or lines of credit to start cutting debt costs before the expected new corporate tax rates and removal of interest deductions make current high-coupon debt undesirable.

The firm believes technology and pharma companies, with their high levels of debt, will be the biggest beneficiaries of tax breaks for overseas cash. Those sectors also received the most benefits in the 2004 repatriation.
 

Saarang
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Posted on Saturday, December 02, 2017 - 01:18 pm:       


Asdf:


no wonder stock market keeps going up. you think they will bring the money by the 2nd term, or it takes decade?




I think it will be quick...Trump and this bill are hugely unpopular...there is very high chance that the pendulum will swing to far left in the next election cycle. My biggest concern is udyama netha Sanders taatha will be front runner now....Seattle liberal media intha violent reaction eppudu choodaledhu....i think they will foster a lot of anger at corporate tax cuts.
 

Asdf
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Posted on Saturday, December 02, 2017 - 01:12 pm:       


Saarang:

Republicans argue it will be much easier for most Americans to fill out their taxes now.




returns ivvakapothe filing easy ye kada.

Saarang:

By far the biggest beneficiaries....corporations...max corporate tax rate cut from 35% to 20% permanently...only US income of corporations taxable now...companies can bring back money parked in tax havens by just paying 14% tax..




no wonder stock market keeps going up. you think they will bring the money by the 2nd term, or it takes decade?
 

Awesomedber
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Posted on Saturday, December 02, 2017 - 12:58 pm:       


Saarang:

around 5k to 10k more tax savings for these states



Nice..Mana Washington vaasulaki pandaga annamata :-)
 

Sannayi_nokkulu
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Posted on Saturday, December 02, 2017 - 12:57 pm:       


Saarang:

around 5k to 10k more tax savings for these states.


enduku baa vallaki already no state tax, malli mana desi bada babulu antha undedi akkade....infact vallaki ekkuva tax lu denkali
sachipotava , avineethi ga batukutava okkate option ante alochinchakunda chachipotaa ane type cbn - OT
Power of Kamma Brahminism ( not literal caste but ideology) is Baahubali -OT
 

Masher
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Posted on Saturday, December 02, 2017 - 12:55 pm:       


Saarang:


super kada
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:55 pm:       

Individual tax cuts expire in 2026....corporate tax cuts are permananent
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:54 pm:       


Masher:

dallas lanti places ki beneficial aa?




yes, generally states without income taxes will see a bigger benefit...around 5k to 10k more tax savings for these states.
 

Masher
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Posted on Saturday, December 02, 2017 - 12:51 pm:       


Saarang:


dallas lanti places ki beneficial aa?
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:51 pm:       

By far the biggest beneficiaries....corporations...max corporate tax rate cut from 35% to 20% permanently...only US income of corporations taxable now...companies can bring back money parked in tax havens by just paying 14% tax...Microsoft and Apple expected to bring back close to $ 200 Billion each.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:47 pm:       


Sannayi_nokkulu:

telugu lo cheppandi aam admi desi kuli janatha ki ento problem?




Problem emi ledhule...just understanding the differences...most people will pay slightly lower taxes.
1) From a tax perspective, no difference between renting and buying a house
2) Cost of living differences will increase more between high cost and low cost states...more people and businesses will move to low cost places ani expectation.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:44 pm:       


Siloan:


house tax valla richhu kondelake bokka kada...it wont happen emo




Inka wont happen ekkada...its passed in both houses...same provision in both houses...minor differences will be ironed out...but it will be a lot closer to the senate bill
 

Masher
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Posted on Saturday, December 02, 2017 - 12:42 pm:       

Good think is no more amt oka 7000$ ada adi salu prastutaniki
 

Sannayi_nokkulu
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Posted on Saturday, December 02, 2017 - 12:42 pm:       

telugu lo cheppandi aam admi desi kuli janatha ki ento problem?
sachipotava , avineethi ga batukutava okkate option ante alochinchakunda chachipotaa ane type cbn - OT
Power of Kamma Brahminism ( not literal caste but ideology) is Baahubali -OT
 

Masher
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Posted on Saturday, December 02, 2017 - 12:41 pm:       

Chuss idemi fitting
 

Siloan
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Posted on Saturday, December 02, 2017 - 12:36 pm:       


Saarang:



house tax valla richhu kondelake bokka kada...it wont happen emo
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:35 pm:       

Goodbye to the deduction for tax preparation expenses. Republicans argue it will be much easier for most Americans to fill out their taxes now.

Goodbye to the deduction for people who bike to work.

Goodbye to the deduction for moving expenses.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:28 pm:       

National Association of Realtors impact analysis by each state

https://www.nar.realtor/taxes/tax-reform/how-tax-reform-impa cts-homeowners-in-each-state
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:24 pm:       


Maverick:

so there would be no flippers? and real demand will drive prices? what do you think?




Flipping anthe generally within 6 months...but i think people will wait more before upgrading to bigger houses...a decent portion of young people move into another house in 3-5 years...that will slow down. This also effectively takes out tax saving component of rent vs buy.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:21 pm:       

National Association of Realtors galla pulihora avochu...but it may have a small impact

And despite studies that have indicated that the mortgage interest deduction might not be good tax policy, it's been good for the real estate market. Without it, the NAR anticipates that housing prices will fall by at least 10% across the board. The organization recently released a report breaking out on a state-by-state basis how the proposed tax reform efforts might hurt home values. Their findings? The NAR estimates that home values would fall in every state.

The report included some additional surprises. While it's typically been talked up that taxpayers in high tax states like California would be adversely impacted by the tax reform bill, the NAR found that the proposal would adversely affect homebuyers more in states like Georgia and Minnesota.

According to the NAR, homeowners in New Jersey, Connecticut, Illinois, New Hampshire, Maryland, Rhode Island, Virginia, Wisconsin, Georgia, Minnesota, New York, Ohio, Pennsylvania, and Texas (in order of sharpest decline with New Jersey most impacted) would see the sharpest dives. Estimated drops range from 10% on the low end to 21% at the high end.

https://www.forbes.com/sites/kellyphillipserb/2017/12/01/rea ltors-predict-tax-bill-will-cause-housing-prices-to-drop-in- every-state/#7e85bf8930fb
 

Maverick
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Posted on Saturday, December 02, 2017 - 12:19 pm:       

so there would be no flippers? and real demand will drive prices? what do you think?
There's a cacophony in the truth, A melody in lies and it accompanies one on every journey, From the lows to the highs
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:19 pm:       

The enormity of the changes are causing concern in the real estate market. However, those who support the bill argue that by doubling the standard deduction, the mortgage interest deduction and state and local property tax deductions are no longer needed (estimates suggest that 95% of taxpayers will claim the standard deduction rather than itemize). And on paper, that might be true. But the U.S. real estate market has long been associated with the privilege of home ownership - and that has been closely linked to the availability of the mortgage interest deduction.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:16 pm:       

SALT: Deductions of state and local property taxes, sales taxes and income taxes — the “SALT” write-offs that are heavily used by homeowners — take a heavy hit under the Senate bill. The House Republicans’ bill would limit SALT deductions to $10,000 in property taxes. Currently there is no dollar limit, and income and sales taxes can be included. The Senate bill would kill the deduction outright.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:16 pm:       

Home equity loans: Under current law, you can borrow up to $100,000 in “home equity indebtedness” and write off the interest on that amount. Home equity loans have become enormously popular in recent years — especially in the form of home equity lines of credit, or HELOCs — as owners’ equity holdings have soared to record levels. In the first quarter of 2017 alone, according to ATTOM Data Solutions, 227,000 new HELOCs worth $43.4 billion were originated around the country. HELOCs are hot.

Among the traditional attractions of HELOCs and other forms of home equity loans has been their flexibility. You can use the money you pull from your equity for whatever you like. That would change drastically under the Senate Republicans’ bill. This plan would erase the entire “home equity indebtedness” category from the tax code, pulling the rug out from under the HELOC market. Although the bill doesn’t get into operational details, homeowners with existing first mortgages might still be able to borrow against their equity, but they might be restricted to using the money for improvements to their principal residence.
 

Saarang
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Posted on Saturday, December 02, 2017 - 12:12 pm:       

Things that are changing...

The Senate bill would also make a major change in one of the most valuable tax benefits for homeowners — the ability to pocket capital gains on home sales free of federal taxation. Under the current tax code, sellers filing jointly can “exclude” up to $500,000 of gains from a sale (up to $250,000 for single filers) tax-free, provided they have lived in and used the property as their principal residence for an aggregate two years of the preceding five. That’s a big deal for many sellers, especially seniors who expect to depend on the cash raised from a home sale to supplement their incomes during their retirement years.

Like the House bill, the Senate version rejiggers the tax-free formula to slash the number of sellers eligible to use this benefit. To qualify, sellers would have to live in their homes for five of the preceding eight years, and they could use the tax-free provision only once every five years. That’s likely to create problems for young families who move from their first home within the first five years and for people who are transferred or move to new jobs more quickly than they had planned.

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