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01-12-2025 | 11:10 PM

#71

CX500T

Joined: Nov 2017

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Quote:

Originally Posted by CX500T

Now for VA. Per the books, the first $18k is tax free but they've been trying to impute disability as income, I'm currently fighting them on two years of this.

Tax = AGI -$18,000 * 5.85%
($477,600-$18,000)*.0585 = $26,886.60
that's 5.63% effective tax rate.

Messed up VA math going off memory. Thought it was tax free under 18k, nope just lower rate on first 17k.

It's 5.75% on anything over $17k, plus $720 for the inccome under 17.

5.696% effective tax rate in VA.
$477,600-17,000 = 460,600 * .0575 = $26484.5
add $720
$27204.5 / 477,600 = .05696

01-13-2025 | 09:37 AM

#72

nene

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Quote:

Originally Posted by OOfff

how does this chart notmalize for progressive income taxes? Or how someone with a high property tax relative to income might change this?

it’s rather impossible to make a comparison from california to other states in terms of property tax because of the distortion caused by prop 13. you have $5m homes with property taxes lower than $300k starter homes.

When I lived in CA 17yrs ago, we had three neighbors and all of our houses were within $50K in value of eachother but because of prop 13, one neighbor paid about $5000K in property taxes/fees annually, I was at around $8000 and the newest neighbor to move in was nearly $11000K annually all for the exact same services/schools etc.

01-13-2025 | 09:48 AM

#73

OOfff

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Quote:

Originally Posted by nene

yep. absolutely idiotic. there are places in beverly hills, newport or palos verdes with 3-digit property tax bills.

01-13-2025 | 10:21 AM

#74

FangsF15

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Quote:

Originally Posted by OOfff

yep. absolutely idiotic. there are places in beverly hills, newport or palos verdes with 3-digit property tax bills.

Sounds like folks are pulling up the ladder. Isn't this the same state that effectively has an 'exit tax' for those leaving for greener pastures?

01-13-2025 | 10:45 AM

#75

OOfff

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Quote:

Originally Posted by FangsF15

Sounds like folks are pulling up the ladder. Isn't this the same state that effectively has an 'exit tax' for those leaving for greener pastures?

sounds scary in a talk radio sound bite, but it’s fairly logical in practice once you understand the loophole it’s designed to close.

also, since few of us are worth $30m, it’s not much to worry about.

Last edited by OOfff; 01-13-2025 at 11:13 AM.

01-13-2025 | 10:57 AM

#76

PRS Guitars

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From: A320 CA

Quote:

Originally Posted by OOfff

sounds scary in a talk radio sound bite, but it’s fairly logical in practice once you understand the loophole it’s designed to close.

also, since none of us make $30m a year, it’s not much to worry about.

So, what is the loophole that it's designed to close for those of us not in the know?

01-13-2025 | 11:00 AM

#77

OOfff

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Quote:

Originally Posted by PRS Guitars

So, what is the loophole that it's designed to close for those of us not in the know?

capital gains tax evasion by people who built gains in california and then move away to realize those gains

doesn’t apply unless your net worth is $15m/$30m or higher in the exit year

Last edited by OOfff; 01-13-2025 at 11:12 AM.

01-13-2025 | 11:56 AM

#78

fcoolaiddrinker

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Quote:

Originally Posted by OOfff

yep. absolutely idiotic. there are places in beverly hills, newport or palos verdes with 3-digit property tax bills.

What are you proposing to replace it with? Complaining is easy. It’s working well for me. 4k property tax on a 1.1 million property I’ve owned and lived in for years. You’re leaving out some details such as it has to be your primary residence.

01-13-2025 | 12:03 PM

#79

OOfff

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Quote:

Originally Posted by fcoolaiddrinker

it “works out” for me, too, if i ignore the consequences it brings for those unfortunate enough to be born after me.

01-13-2025 | 12:08 PM

#80

fcoolaiddrinker

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Quote:

Originally Posted by OOfff

it “works out” for me, too, if i ignore the consequences it brings for those unfortunate enough to be born after me.

yeah 1.1% initially was a bit of a stretch but knowing that would get better and better over time is part of the reason for the initial cost.
That sounds like a non answer to the question. I’m with you on the next generation but simply removing the prop creates a bunch of new issues.