Old 08-02-2007, 03:45 PM
  #4  
iarapilot
"blue collar thug"!
 
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Most FedEx pilots are homeowners and their biggest tax deductions are mortgage interest and property taxes. These deductions reduce your tax burden by a considerable amount and may allow you to be in a lower tax bracket. Now if you sell your home and move to an FDA your biggest tax deductions are gone and your tax equalization will be based on your current income with relatively few deductions. Also for many, if not most, this will elevate you into the AMT and it's separate tax tables. Plus once you are under the AMT some additional deductions will no longer apply. Therefore if you sell your home, move to an FDA your "equivalent" tax burden will be based on being a highly compensated renter with no deductions under the AMT and not as the homeowner you were in the previous year prior to moving to an FDA. This can amount to several thousand dollars of additional tax burden.


Just another example of a plan not well thought out. Should I pick curtain number 1, curtain number 2, or just keep what I have?
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