New York City’s rich are getting hit with record tax bills

NEW YORK POST:

Rich New Yorkers are getting hit hard with record tax bills — unquestionably among the nation’s steepest, according to tax preparers and planners.

The tab is so high that analysts see the tax shock propelling the flight of wealthy New York residents to states with lower taxes, and a much cheaper cost of living.

“Many are selling securities in order to pay their tax bill,” John Graziano, an accountant and financial planner who handles returns for numerous New York City residents. “Some have discussed moving to a so-called lower-tax state.”

And while none of his tax-choked clients have yet loaded up the moving truck, many are mulling whether purchasing a second home in Florida now makes financial sense, as the reality of local and federal laws finally take a deeper bite. Last year was the first full year of the federal tax reform, which limited state and local tax deductions, or SALT, to a $10,000 maximum.

“A self-employed New York City businessperson client who earned about $1 million in 2018 now owes the Federal government $48,000 more this year than last,” Graziano told The Post. “Those who were getting $5,000 to $10,000 back are now getting less than $5,000.”

Other preparers report similar large surges in tax bills for rich Gotham clients filing their returns this year on 2018 income. And while some middle-class residents may be ahead when their previous 2018 tax payments on salary and the like are factored, many preparers are not holding their breath.

More at the NY Post

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