Tax law change US

[sv Grateful]

Originally Posted by Island Time O25

How's this different from the rush to ram through Obamacare?.

Oh, I don't know, how about 25 months of hearings and debate?

[Alberg30Shill]

Originally Posted by Island Time O25

If the corporate rate will go down to 20-22% perhaps that will be the answer to boat ownership. Besides, in these litigious times why would one ever have a potentially liability ladden asset in one's name?

One might if one's asset had a low value and ones personal assets were such that the process you outline was irrelevant.

[Alberg30Shill]

Originally Posted by sv Grateful

Oh, I don't know, how about 25 months of hearings and debate?

Exactly. Thank you.

[valhalla360]

Originally Posted by sv Grateful

Oh, I don't know, how about 25 months of hearings and debate?

Was this before or after we were told it had to be passed before it could be read?

Reality for your average cruiser, it's not going to make much difference. It's all going to come down to which deductions you get now vs which are available after. How I see it breaking down (tentatively):
- Low income cruisers: Most pay little if any income tax and don't have a mortgage or boat loan. If the standard deduction is going up, any tax they do pay should be going down.
- Middle class cruisers: Will also likely come out ahead as they are largely retired with no mortgage or boat loan or far enough into their mortgage that interest isn't enough to justify itemizing, so they are taking the standard deduction which tentatively looks to increase.
- High end cruisers: They may take a hit on the mortgage interest or state/local tax deductions if eliminated but will more than make up for it on capital gains.

Boat manufacturers are likely to come out ahead based on capital gains/corporate income tax being changed in their favor and a lower tax environment is likely to boost sales.

Not saying there aren't some issues with this tax bill but so far nothing definitive that should worry the industry.

[ArmyDaveNY]

As always there will be winners, whiners, and losers. If a deduction goes away then those renting things out will need to adjust pricing accordingly. If a tax is reduced or eliminated, will one reduce the price a corresponding amount?

If one is dependent upon an interest deduction to afford a boat, then perhaps that boat was always too expensive. One should never cut things that close, since deductions and tax codes are ALWAYS subject to change. To me that is like provisioning for exactly the number of days you expect the trip to take, and having no back up.

[Sunday Driver]

PLEASE KEEP THE POLITICS OFF OF THIS FORUM

[BlackHeron]

Originally Posted by ArmyDaveNY

If a deduction goes away then those renting things out will need to adjust pricing accordingly. If a tax is reduced or eliminated, will one reduce the price a corresponding amount?

In a competitive market the cost of any good or service is always dependent on the costs of doing business. If the costs go down for any producer they can now simply lower their prices and attract more business from the competition. Their competitors better figure out how to reduce their own costs or otherwise slim down their margins or simply sit around in wide-eyed wonder at why the phone isn't ringing any longer.

[roverhi]

"If you want to know what's in the bill, vote for it and find out." Thankyou Nancy for that enlightening revelation.

As far as the OP's issues, if you have a money making investment, you may make out. I'm sure that loans incurred in the operation of rental real estate will still be deductible as a cost of doing business. It's the McMansions with very big loans, and taxes that are going to have their tax treatment changed. So much for the changes only being for the Hollywood and Professional rich.