I am worry about 1.8% property tax bill on new home I bought earlier this year. RSU are allocated to family trip overseas and Christmas gifts for all. Serious responses please.
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Engineers might be good at write code or designing hardware or engineering perfect RF radios. But a lot of engineers with brilliant mathematical and scientific minds sure suck at understanding practical financials in the U.S.. That's why inevitably, many engineers get financially screwed in paying way more their fair share into the system than your average dumbass american.
..Oh..And if your spouse doesn't really work, let her to get a real estate license and make sure she does the bare minimum to be qualified by the IRS to be a "real estate professional"... Because on paper, if your net rental income is negative (less than $0) after deductions, for non-real estate professionals, you can't use that negative income to offset your household's W2 income. However, for someone that is a "real estate professional" as defined by the IRS, your paper income loss on your rental business CAN offset your W2 income. So for example, if my household's W2 is $200k, my net rental income is -$20k after all the deductions/claims I can make on a business (despite not actually losing $50k that year), as a regular person, I can't use the -$20k on rental income to offset my W2 income. I need to "carry it over" to next year and offset any rental income that year. However, if my spouse is a real estate professional, IRS rules are such that that -$20k paper lose CAN offset my W2 income, so my effective tax bill is on $180k. Just one of many reasons why W2 income by itself is taxed the worst.
And there is really no reason for you to pay your entire property tax bill off ($14,900) in december, because most likely you will have no tax advantage to do so on your primary home because even if you itemize deduct your property taxes, the full amount of your property taxes will not reduce your taxable income most likely because most likely you will be hitting AMT. If you are a high W2 net worth individual or household (as defined by the IRS, which isn't that hard to be if you live in CA earning those CA W2 wages), you will easily hit AMT. And when you hit AMT, property taxes and state income taxes cannot be used to offset earned income, so it doesn't matter how much property taxes you pay in 2015 versus 2016. Of course, if the property in question is a rental property, it's completely different. Your property taxes ends up being your "expense", so if you want to effectively make your rental income $0 for that year, you can pre-pay the entire property tax bill of 2015-2016 in tax year 2015 and use that to offset whatever rental income you make, along with all the nice little deductions you can legally take to effectively make your rental income close to $0, things you can't normally do with a W2.
Anonymous189152, you aren't paying 1.8% and you aren't paying $14,900 that is due december 10th. Either you can't read your tax bill correctly or you still rent and are just full of shit. Your 2015-2016 tax bill is split between between December and April of next year. Also, in places like carmel valley.
Your tax bill before MR is 1.03%, it's the standard 1% plus these bonds....
HI BOND SAN DIEGUITO-PROP AA 11/06/2012, 2013A A1 NET 0.00967
HI BOND SAN DIEGUITO-PROP AA 11/06/2012, 2015B-1 NET 0.01305
HI BOND SAN DIEGUITO-PROP AA 11/06/2012, 2015B-2 NET 0.00000
SAN DIEGO CITY OPEN SPACE FACILITY DIST NO. 1 D/S NET 0.00000
SAN DIEGO CITY ZOOLOGICAL EXHIBITS - MAINTENANCE NET 0.00500
MWD D/S REMAINDER OF SDCWA 15019999 0.00350.
Then, you also have fixed rate ad-valorem charges will add a fixed cost of roughly $2000-2200, which for a $1million+home(which given your tax bill, it is) is like 0.15-0.17%, with the bulk of the ad-valorem charges being $900 for san diegito unified, $900 for Del Mar USD and 200-300 for your area's maintenance (if you have it)....
Your tax rate is LOWER than if you bought a house with same price in say Clairemont or Chula Vista, because while those areas might not have Mello Roos, they have a shitload more bond initiatives that add up and end up being more than 1.2%. I know because I own properties in different areas, and that's why my tax bills shows up as across those different homes in different areas. On top of that, if your rental property is in the city of san diego, you get to pay a $65/year rental tax too (not a big deal, but just FYI).
California LOL!
Gold
The illegals collecting all the freebies thank you for your contribution.
Karma. lol
You voted for it, now enjoy it!
Honestly, paycheck income sucks, anyway you look at it. W2 income is taxed to the max, and that blows. Even if my bonus is $10000 more than yours (for instance), half of it will end up going to taxes most likely (especially if you have no major itemized deductions that you can "hide" your net worth from). $5000 difference is hardly worth sweating over. My W2 paycheck isn't that large after you factor in things like AMT too. Also, CA has a tax surcharge for high income earners. And their's also higher medicare tax surcharges for high income/net worth individuals from the IRS, thanks in part to Obama and Obama care.
Once you open the doors up to schedule a, c, e, and to a lesser extent schedule d with a k-1 on your 1040, there's a shitload of things you can do to be much more tax efficient, which is why it amazes me how so many people are willing to spend considerable amount of time working more hours for that extra 1-2% pay difference on a W2 to be a "top performer" versus "an above average/ok performer", when the same time spent elsewhere on things that contribute to schedule a,c,e, and d are a lot more tax efficient and you don't need to make nearly as much on schedule a/c/e/d as you do on a W2 to come out roughly the same after taxes.
OP here, I know the 1.8% is total 1.1% property tax plus CDF (aka mello-roos) but still the bill is freaking $14900 due Dec 10th ... I bought it because wanted good schools for the kids and nice place to live for wife ... THAT'S WHY! ... who told you I live in carmel valley? Do you want my full address so you can drop by and have a beer?
LMAO
Why not slap my face and kick me in the nuts instead?
Fortunately, it appears that the good software engineers haven't really had issues finding something in San Diego.
Pathetic
Lol. When I was at Intuit, base salary and stock was about the same as Qualcomm. And at intuit the smallest bonus I saw was 20%.
Cheap bro
Bonus payout this cycle is 25% of normal. Most of my "Senior" and "Staff" engineers with a rating of 6 are receiving in the $1000 range, instead of $3000-5000 last year and the spring. Your boss will have the numbers on November 1st.
Cool story bro
oh, also the new jet
64 million dollars!! life is good.
After split up, it will be time to find a new job
after spinoff, it will get restier and vestier. leverage up, boys.
Kind of risky to buy a brand new expensive house in 2015 while working @Q
EWW NORTH COUNTY
OF course, I doubt this is really a problem you confront, since in all likelihood, you rent.
And here's an example of the difference in property tax bill between some northcounty areas with mello roos but no extra bond initiatives, and lesser expensive areas that have no mello roos, but with a shitload of bond initiatives....The difference is that while mello roos is a fixed rate charge, the extra bond initiatives you pay elsewhere is a percentage charge based on assessed property value. So for an more costly property, say a $1.2million home, you end up paying less in property tax in North County areas with mello roos but without those ridiculous extra bond initiatives, versus a $1.2million home in non-north county without mello roos but has all those extra bond initiatives.
Example:
More affordable non-north country area ......
1% TAX ON NET VALUE 1.0000
VOTER APPROVED BONDS:
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, SER 1999A NET 0.00987
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, SER 2000B NET 0.00420
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, SER 2001C NET 0.00294
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, SER 2002D NET 0.00758
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, SER 2003E NET 0.00375
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, 1998F REF NET 0.00000
UNIF BOND SAN DIEGO-PROP MM 11/03/1998, 1998G REF NET 0.00000
UNIF BOND SAN DIEGO-PROP MM 11/03/98, 2006F-1 REF NET 0.00384
UNIF BOND SAN DIEGO-PROP MM 11/03/98, 2005G-1 REF NET 0.00325
UNIF BOND SAN DIEGO-PROP S 11/04/08, SERIES 2009A NET 0.00078
UNIF BOND SAN DIEGO-PROP S 11/04/08, SERIES 2009B NET 0.00000
UNIF BOND SAN DIEGO-PROP S 11/04/08, SERIES 2010C NET 0.00000
UNIF BOND SAN DIEGO-PROP S 11/04/08, 2010D QSCB NET 0.00000
UNIF BOND SAN DIEGO-PROP S 11/04/08, SER 2012E NET 0.00739
UNIF BOND SAN DIEGO-PROP MM 11/03/1998,2012REF R-1 NET 0.00000
UNIF BOND SAN DIEGO-PROP S 11/04/08, 2012 REF R-2 NET 0.00000
UNIF BOND SAN DIEGO-PROP Z 11/06/12, SER 2013A, A1 NET 0.00000
UNIF BOND SAN DIEGO-PROP Z 11/06/12, SER 2013B NET 0.00000
UNIF BOND SAN DIEGO-PROP Z 11/06/12, SER 2013C NET 0.06000
UNIF BOND SAN DIEGO-PROP S 11/04/08,SER 2014F NET 0.00827
UNIF BOND SAN DIEGO-PROP S 11/04/08,SER 2014G NET 0.00000
UNIF BOND SAN DIEGO-PROP MM 11/03/1998,2014REF R-3 NET 0.00526
UNIF BOND SAN DIEGO-PROP MM 11/03/1998,2015REF R-4 NET 0.00912
UNIF BOND SAN DIEGO-PROP S 11/04/08, SER H-1, H-2 NET 0.00045
SAN DIEGO COMM COLL-PROP S 11/05/2002, SER 2003B NET 0.00000
SAN DIEGO COMM COLL-PROP N 11/07/2006, SER 2006A NET 0.00694
SAN DIEGO COMM COLL-PROP S 11/05/2002, SER 2009C NET 0.00352
SAN DIEGO COMM COLL-PROP S 11/05/2002, 2011 REF NET 0.00144
SAN DIEGO COMM COLL-PROP N 11/07/2006, SER 2011 NET 0.00776
SAN DIEGO COMM COLL-PROP S 11/05/2002, SER 2011 NET 0.00298
SAN DIEGO COMM COLL-ELECTIONS 2002&2006, 2012 REF NET 0.01053
SAN DIEGO COMM COLL-PROP N 11/07/2006, SER 2013 NET 0.00363
SAN DIEGO COMM COLL-PROP S 11/05/2002, SER 2013 NET 0.00259
SAN DIEGO CITY OPEN SPACE FACILITY DIST NO. 1 D/S NET 0.00000
SAN DIEGO CITY ZOOLOGICAL EXHIBITS - MAINTENANCE NET 0.00500
MWD D/S REMAINDER OF SDCWA 15019999 NET 0.00350
Your property take bill is not 1.8%, even in Carmel Valley. The Mello Roos might make it more, but you don't have all the other ridiculous bond initiatives that other areas have to pay (for example, the bond initiatives to fund the local community college) 1.5% not 1.8%.. Nice try. And yeah, call it a crap shack, but someone doesn't mind paying $4200/month for rent. That's fine by me, you can call it whatever you want. I'll rest, vest, and collect rent.
OP you shouldn't have bought that house if you cannot afford it with just your base pay !!! WHAT WE'RE YOU THINKING DUDE
1.2% aveage
FU @189067
OP, are you in the bay area?
0 bonus. cancel christmas.
$15K tax for carmel valley crapshack?
So funny HAHAHA!
I am the OP, I forgot to mention the tax bill is $14,900
Cool story bro