Thoughts about income tax rates next year.

[HuntForHorns]

I usually pay my farm property taxes before the end of the year each year but as I got ready to write the check it occurred to me that Biden might raise our tax rates next year and I would enjoy the benefit more next year.

Question is... even if he does make some changes would they be implemented in 2021 or would it be 2022 before it affected us?

[jaspermac]

Depends on the tax. Cap gains? Income? Payroll?

[HuntForHorns]

that is why i said income tax in the title.

[BuckSmasher]

that is why i said income tax in the title.

.....

[Mudslinger]

What??????? Do not think we pay income tax.

[Buckrider]

So which is it, income tax or property tax?


Sure miss those days of being able to hunt a lease for a nominal cost that didn’t create greed and a feeling of despair if you didn’t kill something!

[JES]

So which is it, income tax or property tax?


Sure miss those days of being able to hunt a lease for a nominal cost that didn’t create greed and a feeling of despair if you didn’t kill something!

Not clear at all...

[60 Deluxe]

Property tax is a deductible expense on form 1040F. Form 1040F carries over to form 1040 as either a loss or income. Delaying the expense on 1040F to a year with high tax rates results in a lower income tax for the year delayed to but a higher tax for the previous year.

I already paid my property taxes for 2020. Even when/if the nut case manages to raise taxes next year, it wouldn't have made all that much difference on my return. You can bet your last dollar that tax rates will increase if the two Georgia senate seats go Democrat. Democrats always raise taxes.

[Jspradley]

There was already a stepped income tax increase set to take effect next year on lower income people, Sleepy Joe didn’t create it.

His proposed tax plan is available on the interwebs, if you make less than $400k a year you won’t be seeing an increase.

Here’s an analysis from the (quite conservative) American Enterprise institute

https://www.aei.org/wp-content/uploads/2020/10/An-Analysis-of-Joe-Biden%E2%80%99s-Tax-Proposals-October-2020-Update.pdf

[glen]

JS- Those have all been words. As far as out of pocket you should feel that until 22 as far as major changes. Now inflation, fuel costs, grocery cost, etc we will see.

[PK_IN_TX]

Biden can’t do anything to the current tax rate unless it passes Congress. Pray that the Georgia Senate seats stays red.


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[txpitdog]

You should look at the tax bracket you fall into and where within the bracket your income fits. If you are in the lower portion of your bracket you will be unlikely to be impacted by a tax law change. If you are on the upper end, it would be possible for a law change to bump you into the next higher bracket. If that were the case then take the new higher rate minus your current rate and multiply the difference by the amount of your property taxes. That is the amount that’s “at risk”. Then decide if it’s worth it to wait to pay until after Jan 1