Tags: florida | nevada | high-tax states

New Tax Law Spurs Buyers to Seek Residence in Lower-Tax States

New Tax Law Spurs Buyers to Seek Residence in Lower-Tax States

By    |   Wednesday, 06 June 2018 05:57 PM

Florida and Nevada have emerged as two of the early beneficiaries to the new tax law that has prompted an exodus from high-tax states, The Wall Street Journal reported.

Provisions in the "Tax Cuts and Jobs Act" that took effect Jan. 1 caps deductions individuals can take with their State and Local Taxes (SALT) and property taxes, slamming residents in states like California, New York, Connecticut et al.

Enter the tax refuge that Florida and Nevada can provide, especially to wealthy Americans.

"I’ve seen a huge increase in the number of clients who want to purchase in Palm Beach to establish residency in Florida," Chris Leavitt, director of luxury sales at Douglas Elliman Real Estate in Palm Beach, told the WSJ. “And there has been a pickup since Jan. 1."

Another epicenter of escape - the Nevada side of Lake Tahoe. The Californians of Lake Tahoe are paying up to 13.9 percent in state income taxes compared to 0 percent on the Nevada side.

"If you’re a wealthy tech executive from the Bay Area who can live wherever you want and you have a $3 million income, you would have $399,000 a year in savings (in Nevada). That’s a lot of money to spend on real estate," real-estate developer David Hutchinson told the Journal.

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Florida and Nevada have emerged as two of the early beneficiaries to the new tax law that has prompted an exodus from high-tax states, The Wall Street Journal reported.
florida, nevada, high-tax states
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2018-57-06
Wednesday, 06 June 2018 05:57 PM
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