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How Will the New Tax Law Affect Me?
With tax season upon us, we’re all eager to see how the new tax law will affect us. The increased standard deduction may water down many (or all) of our deductions. And, the inability to write off State and Local Taxes (SALT) will increase our federal tax burden. Hopefully, the lower federal rates will more than make up for those losses. I suspect there will be many experiences, as our individual circumstances are so different.
Most of my clients are in California, where we’ve all “agreed” to pay higher taxes just because we like the place so much. While I see friends and clients moving away from sunny California, I also see new clients moving here to retire in the nation’s best climate. So, California isn’t going anywhere. Though, I do wonder how long the budget can survive the high taxes and spending.
Investors continue to invest in California real estate. Largely because we want to touch and feel our investments. Many smaller investors are afraid of investing out of state. Folks also like the appreciation they’ve seen in CA values. Will that continue? That’s the $64,000 question.
Enjoy your tax season. If you have any real estate financing needs, of course, give me a call.