New York, Donald Trump, Rachel Cohn discussed on Purity Products

Automatic TRANSCRIPT

Nicotine nicotine is an addictive chemical. Don't load now, but it's going to be tax season. Pretty soon. You've probably gotten those tax reports your 4._0._1._K's your mutual funds W twos. And all those other ws. They've all come in the mail and pretty soon. It's time to put it all together and pay your taxes and cry and cry and to make you cry even more we've invited wwl LARs Alice Stockton Rosellini to tell us about the new tax changes here in New York and New Jersey. Less deductability is the guests the watch word, right? Well, it depends. It depends on where you are. It depends on how much money you make. But let me tell you this. I if you're sitting there going, where's my tax returns? Like, I've never done that they're online, and I don't know how many times, you know. 'cause I have several things that I do outside of here even these W twos for the NBC radio news network. You have to go online. That's right. We got. Nothing's getting mailed. Okay. So that's number one. There is nothing coming in the mail. But the the cornerstone of this this new tax law was to lower the corporate income tax rate from thirty five to twenty one percent. So that applies to your c corporations which is like Apple IBM G. It's just like somebody somebody walked up. You Alison said we're going to lower your housing costs by a third. We're going to lower your mortgage by a third your electricity by a third in all those types of things that that would have a dramatic impact on your lifestyle that is a CPA Rachel Cohn. And he says, well, it increases the earning of all public companies most companies in the US about ninety percent are LLC's R S corporation. So it doesn't mean it's the big guys the big big guys LLC's. Don't get it. LLC's? Do not get it. However, some senators perked up and said, wait, wait, wait. We have to do something for LLC's S Corp. So they create. Created something called the one ninety nine a deduction. I hope you're taking notes and basically nowhere. One ninety nine is. So go ahead. Yeah. You get you. Get a deduction of twenty percent of whatever your prophet is a little bit. Yeah. That's what I think they carve that out mainly for real estate. So the the real estate sector I were screaming, they targeted them. So that yes. Say one hundred thousand dollars. Well, twenty percent is not going to be taxable. Right. The only tax on eighty right? Yeah. I guess that'll be good for some people. Right. Ninety nine dollars. All right. So a lot of people are upset about that ten thousand dollar cap on the state tax, and the, you know real estate tax deduction. Yeah. Let's say his property taxes in New York or twenty five thousand and he pays state income tax three hundred thousand so that's three hundred twenty five thousand dollars deduction on his federal return you stable duck. No more only ten thousand that would hurt. Mr. Mr. he was a three hundred thousand dollars in taxes. Mr. hey, so Mr. he. Millionaire's? He's doing. Actually, Ray says he goes that's not really when you think of if you live in New York City, it's really not that much. And I'm just like, okay. Whatever. Generally, speaking, most people will pay a lower tax under the new law because of a combination of lower tax rate larger standard deductions and an increase child tax credits. So for example, standard deductions in two thousand seventeen where sixty three hundred for a single person twelve thousand for a joint filing, married. Couple ninety three hundred for heads of households. Okay. Now in two thousand eighteen the standard deduction deduction is twelve thousand for single taxpayers twenty four thousand for married couples and eighteen thousand for heads of households. So they doubled all of that. So for the average Joe the average middle class guy or upper middle class guy that that's going to work out for them. Another big complaint, though is that while we're cutting taxes, we're contributing to the national debt because we haven't cut spending technically the United States is calling into into debt. More just isn't generating enough money. Now, the Republicans go for the fury of trickled down. Meaning, hey, if you make companies make more money because they pay less tax. They'll be able to hire more people do more things. And in the end, they'll be more successful, and the government will get more tax money in the end some other way. But there are many people that don't believe in the trickle sounds like Ronald Reagan to me, right, trickle down Reagan supported the trickle down. He thought it worked. Yes. In the economy was booming under Reagan and know, we're not doing so bad right now under Trump, right? So let's say, you know, we just have to wait and see. So anyway, the elimination of the twenty three hundred dollar deduction for every family member that got some people upset, but that's not necessarily a bad thing. Either. Well, if you had a lot of kids a bad thing. Well, deduction reduces your income, I'm which your taxes calculate a credit is something you receive after you calculate the tax. So this is this is this is how rare explains credits are far better than a twenty percent tax bracket, and you get a five thousand dollar deduction, reducing your tax by thousand dollars. But if you get a five thousand dollar tax credit, you reducing your tax by five thousand dollars. So you make sense. Yes. So you no longer get exemptions for your kids under the new tax law. But you do get a child tax credit. So as long as the kid is under sixteen you get a two thousand dollar credit. So that comes right off right off your income. You didn't get into the alternative minimum tax with this guide. Now, I hate that. I hate nine stand alternative minimum tax. Did they I didn't even realize did they change that? I thought they left that the same. I think it's been modified a little bit. That's one of those killers that gets here when you least expect that. Yeah. Just you know, you think you got a lot of deductions, and you can write off a lot of stuff in this. Sorry about that. That was too much. You're gonna have to pay the alternative minimum tax, right, which I've run into because I don't know about you. I. What will we do? Well, less now because we can't deduct the onerous property taxes, right and the income taxes that we pay and the thing is is they make it sound like well, all of those rich people in New York and New Jersey and Cal we're not rich. We just have really high property taxes. But I had to ask him this. Rachel Cohn was an accountant for Donald Trump, Donald Trump was first starting out. And I said, so if Donald Trump was still living in Trump Tower. How would he you know, how would the tax law affect him? They raise the state tax deduction to eleven million of a person. So that would help him out there. But when he was a resident of New York and he had high state tax liabilities. So he would probably be hurt onto this fax. Interestingly enough, but now he's a resident of Washington DC, I suppose because he spent most of his time in Washington. It gets away. We'll never know. I I really honestly whether you like him or not I really wanna see his tax nothing there to see. Thank you. Wwl walks in Seaney, giving.

Coming up next