Just returned from california

I still have a hard time understanding how this will work, but don't you need to have a home worth over $800k to get anywhere near that limit?

 

Very true!

 

SALT is local and state. It isn't just property tax, it includes your income tax as well.

So if you paid 50K in income taxes to CA, and say 15K in property taxes. That is 65K of taxes that I could deduct from Federal. Now I can only deduct 10K. So SALT will kill many of us.

 

San Francisco median house sales price is about $1,500,000.

 

Partially correct. SALT is limited to $10k. That is your state and property tax. VBut that doesn't include mortgage interest. Mortgage interest can still be deducted up to $750k mortgage on new purchases. It was $1 mill before.

My property tax alone is $10k a year. However, running the numbers we should a decrease in our overall tax burden due to the decrease in federal tax rates.

 

Thanks, I literally have no clue how this worked. Will be speaking with my tax guy soon about all of this.

 

Your right, but heck, I feel like someone who works at McDonalds in SF makes at least $75k starting

 

It is gorgeous, I won't deny that, was there literally last year

But youre insane if you wanna move there! Unless you wanna pay tons of taxes and deal with inane policies and stuff (not to mention annual forest fires due to the environmentalists keeping people from clearing dead shrubs), go somewhere else, like Texas

 

Seriously, this thread was a bit of a scary eye opener. Again, while I can't wait to leave the state (mostly for cost issues) and move back to my native CO, I recognize I'm in an extreme minority with that desire.

 

I'm happy here in my little SW-NH Town of ~1500 good folks. 4-season, one stop light about ~8-10 miles away, fire my gun off the back porch, No MASSIVE wildfires, beautiful country, ~15min to skiing, very clean lakes, and did I mention - some nice folks who say hi when they see you main st.

 

@viking15 It is one thing to spend time here on Holiday. It is entirely different living the day-to-day grind that is Southern California: traffic, crime, hoards of people everywhere you go, ridiculous high cost of living, gun laws, plus plenty of idiots and politicians.
Think it through. Spend more time out here before you commit...

 

And then they'll be replaced with Robots

 

Colorado is the only other state I'd consider living, fucking love it up there!

 

Think if it this way. With an 8.75% state income tax, if you made $100k/year you would owe $8750 in state taxes. Add a mortgage ($800k is not an expensive house in Cali) of say $400k @ 4.5% and you're paying $1500/mo in mortgage interest, which is $18k/year. Property tax on a house varies alot, but it's several thousand a year. We're up to probably $30k in what was deductible.

 

http://theeconomiccollapseblog.com/archives/55-reasons-why-california-is-the-worst-state-in-america

 

Idaho would be a hell of a lot better than the Philippines or Thailand.

 

We moved from NYC to AZ in '95 and very glad I did it. Each year we go to Carlsbad on vacation and I like a lot SoCa but I will NEVER consider of moving there. After a week in Ca, coming home is like sunshine and birds singing.

 

CA is nice but I don't plan to move back. I got tired of the traffic and the crazy cost of living. I can see CA from my house but don't have to pay state income tax and will be able to retire sooner now that I can save more.

What exactly do you do for work where you pay $50K in state income tax

 

I went through this list, while alot of it is valid, there are plenty on there that aren't reasons or are happening elsewhere as well.

 

As a Californian the way I look at California is there's So Cal, Bay Area, the Valley, Greater Sacramento Area, and Auburn/Tahoe(Personal thought) . Seems everybody on the forums when they think of California Its Liberal So Cal or Bay Area. It seems like most people like to get caught up on politics rather just enjoying the state for what it is.