There could be some SALT in the wound for New Yorkers come April 15.
Some living in high-income tax, high-property tax areas like New York City and its tony suburbs may be surprised by their tax returns this year. President Trump’s Tax Cut and Jobs Act promised to cut taxes, but limits on state and local levies that can be deducted may adversely affect wealthier tax filers, Bloomberg reports. And some people are turning to real estate professionals for advice.
Up to 11 million taxpayers will be affected by so-called SALT deductions on taxes they file this year, Bloomberg found, and they stand to lose a collective $323 billion.
Real estate brokers in South Florida have sought to capitalize on the new law, attempting to woo New York buyers with promises of low income tax. Now, local realtors in New Jersey are also seeking to lure buyers, Bloomberg found, by advertising small decreases in property taxes across county and town lines.
For example, Saddle River in New Jersey hired a public relations firm to rebrand the town as the “Palm Beach of Route 17,” Bloomberg reported. The town keeps taxes low by opting not to have a public high school, sidewalks or many services found in neighboring towns. [Bloomberg] – Decca Muldowney