LACONIA Tax Increases

[MAXUM]

Originally Posted by PeterG

If you're worried about your lake tax bill know, keep your fingers crossed, and write to your Congressmen to urge him to vote NO on the current Republican tax plan. if it passes, property taxes will no longer be fully deductible on your federal return.

The details are still being hammered out, but most reports say that only the first $10,000 will be deductible. So if your primary residence has $10,000 or more in taxes, and your lake house has another $10,000, you will lose $10,000 in deductions. It will have the same cash impact as your lake taxes increasing by $3,300 (assuming a 33% tax bracket).

While this may be true I don't like the concept of capping deductions of any local state taxes being paid...as this results in double taxation. If you look at this nationally, NH represents a very small percentage of the population and also has if not the highest, one of the highest property tax rates in the country. I give the congress credit for doing their best to target tax cuts where they will do the most good, but no plan is perfect either.

Furthermore - it's quite possible that this turns into a wash - while you may not be able to write off as much property tax, the tax relief elsewhere may offset that and then some. As you say the devil is in the details.