NV or CA state tax
01-25-2018, 06:34 AM
#31
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Joined APC: Feb 2014
Position: Head pillow fluffer, Assistant bed maker
Posts: 1,342
In addition, that state 'charity' deduction isn't going to fly.
Californians and other high tax states are going to start paying their fair share of federal taxes. If they want a bloated, expensive state government, that's their choice. Going forward, their federal tax deduction for that bloat will be limited.
Why should someone who lives in CA pay lower federal taxes on the same amount of wages than someone lives in NV and doesn't have a bunch of state tax writeoffs? Californians aren't paying their fair share of federal taxes.
Californians and other high tax states are going to start paying their fair share of federal taxes. If they want a bloated, expensive state government, that's their choice. Going forward, their federal tax deduction for that bloat will be limited.
Why should someone who lives in CA pay lower federal taxes on the same amount of wages than someone lives in NV and doesn't have a bunch of state tax writeoffs? Californians aren't paying their fair share of federal taxes.
01-25-2018, 06:57 AM
#32
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Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
Sorry, but that is false. Ca contributes more to the federal govt person than they receive back in benefits. It’s time we kept some our money in state and stopped sending it to MS and AL so they can pay for schools that teach kids that if they don’t pray enough that will go to he11.
And using the liberals' philosophy: Californians make more money so they should be paying more in federal taxes than MS and AL. Again, FAIR SHARE (to quote Elizabeth Warren).
01-25-2018, 07:01 AM
#33
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Joined APC: Jan 2006
Posts: 1,610
You are correct, I could not pre-pay my taxes that are for the 2018-2019 year, but I don’t think many people were trying to do that. I’m annoyed how the IRS statement came out because it scared a lot of people away from doing what I did (which works just fine). I spent many hours of my life the last week of December getting friends and family to pre-pay their property taxes that were billed in 2017.
My two mortgage companies both said their phones were ringing off the hook with people pre-paying their property taxes. I guarantee you that was not factored in when they estimated the tax bill would add just $1.5 Trillion to the deficit. I guarantee you it will be way more once all the accountants and lawyers figure out the new loop holes.
01-25-2018, 07:15 AM
#34
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Joined APC: Jan 2006
Posts: 1,610
Several states already allow to to contribute to a state charity and get a 1:1 write off on your state income tax. It’s mostly red states who use it as a way for people to pay for private school. Now that blue states want to use the same loophole, it appears to be an issue...
Funny, it’s almost like Republicans hating double taxation forever with regards to the estate tax, but now that’s it’s politically convenient for them to have double taxation (pay your federal tax on money you already paid to the state), they do it. Whatever happened to the party who supported state government over the federal one? I would much rather contribute most of my money to the state govt, and only give the federal govt money for defense and a few very basic services. But now the GOP is saying that the federal govt should get more of your money, and your state govt should get less by lowering your state income tax. This is why my voter registration switched from Republican about 10 years ago. I cannot handle the hypocrisy. As a Texas boy born and raised, I never thought I would see the day.
I guarantee you that this year, CA and several other states will pass bills allowing a state charitable contribution to happen. It’s very possible that the IRS may find a way to put a stop to this, At which point, CA would shift a chunk of their income tax to a payroll tax deduction which is a write off to the employer. This is also used by several states. This I do not believe the IRS can stop. One way or another, I believe CA and several other states will go back to the almost 100 year status quo of no double taxation of state income tax and federal income tax.
Funny, it’s almost like Republicans hating double taxation forever with regards to the estate tax, but now that’s it’s politically convenient for them to have double taxation (pay your federal tax on money you already paid to the state), they do it. Whatever happened to the party who supported state government over the federal one? I would much rather contribute most of my money to the state govt, and only give the federal govt money for defense and a few very basic services. But now the GOP is saying that the federal govt should get more of your money, and your state govt should get less by lowering your state income tax. This is why my voter registration switched from Republican about 10 years ago. I cannot handle the hypocrisy. As a Texas boy born and raised, I never thought I would see the day.
I guarantee you that this year, CA and several other states will pass bills allowing a state charitable contribution to happen. It’s very possible that the IRS may find a way to put a stop to this, At which point, CA would shift a chunk of their income tax to a payroll tax deduction which is a write off to the employer. This is also used by several states. This I do not believe the IRS can stop. One way or another, I believe CA and several other states will go back to the almost 100 year status quo of no double taxation of state income tax and federal income tax.
01-25-2018, 08:05 AM
#35
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Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
Several states already allow to to contribute to a state charity and get a 1:1 write off on your state income tax. It’s mostly red states who use it as a way for people to pay for private school. Now that blue states want to use the same loophole, it appears to be an issue...
3. The part of a contribution from which you receive or expect to receive a benefit,
https://www.irs.gov/pub/irs-pdf/p526.pdf
If one receives a 1:1 state tax credit, there is nothing to write off on federal taxes. Anyone writing off those 'contributions' on federal taxes is committing tax fraud. No different than Wesley Snipes.
Funny, it’s almost like Republicans hating double taxation forever with regards to the estate tax, but now that’s it’s politically convenient for them to have double taxation (pay your federal tax on money you already paid to the state), they do it. Whatever happened to the party who supported state government over the federal one? I would much rather contribute most of my money to the state govt, and only give the federal govt money for defense and a few very basic services. But now the GOP is saying that the federal govt should get more of your money, and your state govt should get less by lowering your state income tax. This is why my voter registration switched from Republican about 10 years ago. I cannot handle the hypocrisy. As a Texas boy born and raised, I never thought I would see the day.
Now, double taxation? WTF? We pay federal, state, and local taxes on just about everything. You pay federal taxes on your income. Most states have state taxes. There are a huge number of municipalities that have local taxes. So by your twisted definition, we're all being triple taxed.
But that's a complete distortion of the definition of double/triple taxation. It is meant to apply to taxes paid to more than one country or being taxed at both corporate and personal levels (which happens today with your investments).
As for the estate tax, it is double taxation because it's the federal govt levying a second tax on money that's already been federally taxed. But I don't care about estate taxes because they're so easy to avoid.
I guarantee you that this year, CA and several other states will pass bills allowing a state charitable contribution to happen. It’s very possible that the IRS may find a way to put a stop to this, At which point, CA would shift a chunk of their income tax to a payroll tax deduction which is a write off to the employer. This is also used by several states. This I do not believe the IRS can stop. One way or another, I believe CA and several other states will go back to the almost 100 year status quo of no double taxation of state income tax and federal income tax.
I would not be surprised if the IRS simply disallowed all charitable deductions from abuser states and sent the residents who claimed charitable deductions tax bills. At that point, the burden of proof falls on the individual because the IRS will be computing interest on all unpaid taxes. And in the end, a tax court judge would rule against anyone who claimed a 1:1 contribution as a federal tax writeoff.
01-25-2018, 08:09 AM
#36
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,407
It's not an aviation regulation issue, it's a taxation issue.
01-25-2018, 08:16 AM
#37
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,407
I have spoken to a few different tax attorneys over the years. Also read a book on it. Seems that your state of residence is often "a state of mind."
When I left my former state for Texas, I got a bill 23 years later for truck registration. The truck was totaled in an accident something like 19 years ago. Anyway, I sent them a letter stating I was in Texas, moved there at xyz date and proof that the truck was totaled. No problems.
Some states that are "fishing for dollars" due to their high debts, low cash reserves, or fleeing tax base are desperate for money. It is wise to insure all cords are cut if you don't want state X to think they can tax you, when in fact your state of residence is state Y.
If State Y is more tax favorable, get a voter registration card, local library card, concealed handgun permit, drivers license, etc.
They are pretty tight on having two drivers licenses. Don't even try it. I used to have two, one in Louisiana, and one in Texas. A State trooper told me to shread the LA license. Way too much legal headache. I kept it so I could hunt back in Louisiana on the cheap. Bottom line: Not worth it, just pay the out-of-state fees.
If you wanted to be a resident of a particular state, you can do it. Just do all the things needed to establish residency, regardless of pilot base. Likely Ohio is still sending out those silly tax letters to my former home in Louisiana, but thankfully Cleveland is no longer taxing the hell out of me too. Crazy paying Louisiana, Ohio, and Cleveland taxes.....
When I left my former state for Texas, I got a bill 23 years later for truck registration. The truck was totaled in an accident something like 19 years ago. Anyway, I sent them a letter stating I was in Texas, moved there at xyz date and proof that the truck was totaled. No problems.
Some states that are "fishing for dollars" due to their high debts, low cash reserves, or fleeing tax base are desperate for money. It is wise to insure all cords are cut if you don't want state X to think they can tax you, when in fact your state of residence is state Y.
If State Y is more tax favorable, get a voter registration card, local library card, concealed handgun permit, drivers license, etc.
They are pretty tight on having two drivers licenses. Don't even try it. I used to have two, one in Louisiana, and one in Texas. A State trooper told me to shread the LA license. Way too much legal headache. I kept it so I could hunt back in Louisiana on the cheap. Bottom line: Not worth it, just pay the out-of-state fees.
If you wanted to be a resident of a particular state, you can do it. Just do all the things needed to establish residency, regardless of pilot base. Likely Ohio is still sending out those silly tax letters to my former home in Louisiana, but thankfully Cleveland is no longer taxing the hell out of me too. Crazy paying Louisiana, Ohio, and Cleveland taxes.....
https://www.usatoday.com/story/news/...tion/22066863/
You don't have to worry about being double taxed, but you can still create confusion and problems if you do administrative things which cause a state to think they should be taxing you. You can own a vacation home in another state. But once you start signing up for various public service which put you on the local radar, you may need to prove you're not a resident.
01-25-2018, 08:23 AM
#38
Gets Weekends Off
Joined APC: Nov 2009
Posts: 5,265
Sorry, but that is false. Ca contributes more to the federal govt person than they receive back in benefits. It’s time we kept some our money in state and stopped sending it to MS and AL so they can pay for schools that teach kids that if they don’t pray enough that will go to he11.
Limo liberals need to get out of their bubbles and see what’s going on around them. Poverty in CA, homelessness, etc is out of control. I’ve lived in both MS and CA since you bring them up. The poverty and homeless problems in CA are on a scale completely unfathomable to anyone in MS. In MS someone on a lower-middle class income can afford to buy a house in a solid school district, and keep most of their money. Try doing that in CA.
01-25-2018, 08:52 AM
#39
Line Holder
Joined APC: May 2010
Posts: 35
If you've been flying for a major carrier for a few years, you have enough money to pay taxes and live acceptably well in California, or anywhere.
As for real estate, don't try to live in CA if you want/need a McMansion. Otherwise just downsize a little and enjoy. Get outside instead of watching TV in the snow or humidity. This December & January, I've been running nearly every day in shorts and a t-shirt to get some exercise & sun. Sports, arts, beach, mountains, shopping, education, diversity...all hard to beat elsewhere. We bought a nice 1500 sq ft house in the foothills just 10 minutes from BUR by car, or 1.5 hours to LAX by MetroLink & MetroRail/FlyAway bus. New LAX people mover will connect all the LAX terminals to new Crenshaw line MetroRail station in a few years (thanks to Measure M and some of my taxes).
Just like the federal government, CA state spending has been unstable in the past (high pensions, etc.), but will be improved.
Proud to be here, and proud the state works within the law to take good care of all our great residents while Washington talking heads work out fair immigration reform.
Life is good.
As for real estate, don't try to live in CA if you want/need a McMansion. Otherwise just downsize a little and enjoy. Get outside instead of watching TV in the snow or humidity. This December & January, I've been running nearly every day in shorts and a t-shirt to get some exercise & sun. Sports, arts, beach, mountains, shopping, education, diversity...all hard to beat elsewhere. We bought a nice 1500 sq ft house in the foothills just 10 minutes from BUR by car, or 1.5 hours to LAX by MetroLink & MetroRail/FlyAway bus. New LAX people mover will connect all the LAX terminals to new Crenshaw line MetroRail station in a few years (thanks to Measure M and some of my taxes).
Just like the federal government, CA state spending has been unstable in the past (high pensions, etc.), but will be improved.
Proud to be here, and proud the state works within the law to take good care of all our great residents while Washington talking heads work out fair immigration reform.
Life is good.
Last edited by FGHJKL; 01-25-2018 at 09:14 AM.
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