Taxes trump hometown

From the NY Times:

Minimizing the Pain of Trump’s Tax Law

Longtime New Yorkers Joanne and Vince Intrieri left their 3,100-square-foot three-bedroom near the United Nations earlier this year, trading it in for a sunny three-bedroom condominium in Downtown Miami.

Ms. Intrieri, who has a construction and design firm that she is moving to Miami, and Mr. Intrieri, who owns VDA Capital Management, were not ready to retire. But they decided to move to the Florida coast to escape exorbitant taxes that they knew would be exacerbated by the Trump administration’s new tax law.

“My husband and I have been in New York City for more than 20 years, but we aren’t tied to an office anymore and our kids are older,” said Ms. Intrieri, 59. “Between the state and city taxes, plus about $50,000 in property taxes, it is a lot of money going out the door. Why do it?”

The Tax Cuts and Jobs Act, as the legislation is known, was passed last year and will be applied to 2018 returns, which are due in April 2019. The law limits the deductions taxpayers can take on property taxes and state and local taxes (known as SALT deductions) up to $10,000 — a cap that many New Yorkers easily exceed. For the highest earners, New York state’s income tax rate is 8.82 percent and New York City’s rate is 3.876 percent. Nearly half of Manhattan’s taxpayers have taken SALT deductions in the past, and the average deduction has been over $60,000 a year.

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14 Responses to Taxes trump hometown

  1. chicagofinance says:

    fRist

  2. chicagofinance says:

    Ms. Intrieri……. based on that picture….. fix yourself girl, you got a camel-oe….
    https://www.youtube.com/watch?v=lvyt0PwMX_g

  3. Juice Box says:

    Bad example she is 59 and he is what in his 60s? It’s semi retirement they don’t have to deal with the Miami schools and expensive private schools, plus they are cashing out a near peak on their expensive 3br in Manhattan.

  4. NJDepartment says:

    Wells Fargo letting go 600 mortgage brokers.. Says something

    https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKCN1L922Y

  5. Juice Box says:

    In coconut grove Carrollton all girls Catholic schools is 32k a year. There is no way you are sending your princess to south Miami high school.

  6. Chuchundra says:

    Those he commands move only in command,
    Nothing in love. Now does he feel his title
    Hang loose about him, like a giant’s robe
    Upon a dwarfish thief.

    — Macbeth, Act 5 Scene 2

  7. exEssex says:

    I love a good camel…..

  8. 30 year realtor says:

    Impact of property tax burden on real estate value…A house sold at the Bergen County sheriff sale located in Norwood is a prime example of negative impact of a large tax burden. GLA over 7000 and a property tax bill (just reduced by agreement with assessor) of $45,000 per year. Prior to the sheriff sale the property had been on the market for $1,580,000. Property has been on the market since about 2014 with an initial ask in excess of 3 million.

    In the last 12 months the highest priced home to sell in Norwood was a 4800 GLA with a tax bill of $23,000 and it sold for $1,211,000. The age, style and condition were similar to the foreclosed property but the house is much smaller. It could be argued that this property has a marginally inferior location as well. In all there were 3 sales over $1 million in Norwood in the last 12 months.

    The 7000 GLA foreclosure is assessed for more than double the value that the highest priced home in town closed for in a year. Yet it is priced about 25% higher and has not sold. At the current price it is a short sale, so there is no incentive for the seller to turn away offers. Taxes are the only reason why this house is worth a similar amount to the inferior sale. A reasonable buyer would prefer less house at a greater cost per square foot than a bigger home with a giant tax bill. I am seeing this pattern played out all over North Jersey.

  9. Walking Bye says:

    30 year, add in the fact that you are stuck up in the middle of nowhere with no major highway access to 17 or the parkway and you have a long commute as a physician to hackensack, englewood etc. No easy access to palisades parkway adds to the misery of the homes on that end of Bergen County. I’ve driven from westwood to norwood during rush hour and its a 30-40 minute trip to go 5 miles. When the Lederle plant was open you had a lot of management, engineers, scientist living there as it was 15 min ride to work from Old Tappan et al. Even the blue collars could afford the homes there because salaries were generous. (Lederle was part of American Cynamid which had its HQ in the now abandoned Toys r us hq in Wayne)

    Norwood also has a mixed housing stock with some really nice homes and some homes right out of Texarkana.

  10. Blue Ribbon Teacher says:

    There’s a real estate agent contacting all of our neighbors asking if we want to sell because the market is hot. 5 foreclosures in the neighborhood are in the process of being flipped and all the homes are moving for the same price they did last year, which is what I thought was above market value.

  11. WickedOrange says:

    anecdotal, but here in Tenafly it seems like this spring/summer, tear down & rebuild frenzy is still in full swing.

  12. Yome says:

    Mass shooting at a Jacksonville video tournament

  13. The Great Pumpkin says:

    “Blackstone was the trailblazer in financializing rents. It issued the first rent-backed structured securities in November 2013. This has become a common funding mechanism. And shortly before the Invitation Homes IPO, it obtained Fannie Mae guarantees for $1 billion in rental-home mortgage-backed securities.
    This second wave is different. PE firms are paying prices at the peak of the market, amid ceaseless complaints that there isn’t enough inventory of homes for sale, for folks who actually want to live in the homes they buy.
    And these are just the biggest players. There are thousands of smaller players. And all but mom-and-pop investors pay cash and then fund the purchases with leverage at the institutional level.”

    A massive buy-to-rent scheme is hitting the housing market – Business Insider
    https://apple.news/A-V7sfPpfT0CfF-terQ1CEQ

  14. The Great Pumpkin says:

    Why are they continuing to buy if it’s peak pricing? 🤔

    Second, why are major investors choosing real estate with such a hot stock market?

    Third, when they last went into buy in 2011-12, they won. Why do you think this time is any different? These people see the long term writing on the wall with supply and are skillfully playing on it.

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