Jane and Greg are married and file a joint return. They expect to have $520,000 of taxable income in the next year and are considering whether to purchase a personal residence that would provide additional tax deductions of $104,000 for mortgage interest and real estate taxes. View the 2022 tax rate schedule for the Married Filing Joint filing status. Read the requirements. Requirement a. What is their marginal tax rate for purposes of making this decision? (Enter amounts as percentages to one decimal place.) What is the marginal tax rate if the personal residence is not purchased? What is the marginal tax rate if the personal residence is purchased? %
Jane and Greg are married and file a joint return. They expect to have $520,000 of taxable income in the next year and are considering whether to purchase a personal residence that would provide additional tax deductions of $104,000 for mortgage interest and real estate taxes. View the 2022 tax rate schedule for the Married Filing Joint filing status. Read the requirements. Requirement a. What is their marginal tax rate for purposes of making this decision? (Enter amounts as percentages to one decimal place.) What is the marginal tax rate if the personal residence is not purchased? What is the marginal tax rate if the personal residence is purchased? %
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter9: Individuals As Taxpayers
Section: Chapter Questions
Problem 2CE
Related questions
Question
Transcribed Image Text:Tax Rate Schedule
If taxable income is:
Not over $20,550
Over $20,550 but not over $83,550
Over $83,550 but not over $178,150
Over $178,150 but not over $340,100
Over $340,100 but not over $431,900
Over $431,900 but not over $647,850
Over $647,850
Show Transcribed Text
Married, Filing Joint and Surviving Spouse
The tax is:
10% of taxable income.
..$2,055.00 +12% of the excess over $20,550.
.$9,615.00 +22% of the excess over $83,550.
$30,427.00 +24% of the excess over $178,150.
$69,295.00+ 32% of the excess over $340,100.
$98,671.00 + 35% of the excess over $431,900.
$174,253.50 +37% of the excess over $647,850.
Requirements
S
Ć
a.
What is their marginal tax rate for purposes of making this decision?
b. What is the tax savings if the residence is acquired?
>
Transcribed Image Text:Jane and Greg are married and file a joint return. They expect to have $520,000 of taxable income in the next year and are considering whether to purchase a personal residence that would provide additional tax deductions of $104,000 for mortgage interest and real estate taxes.
View the 2022 tax rate schedule for the Married Filing Joint filing status.
Read the requirements.
←)
Requirement a. What is their marginal tax rate for purposes of making this decision? (Enter amounts as percentages to one decimal place.)
What is the marginal tax rate if the personal residence is not purchased?
What is the marginal tax rate if the personal residence is purchased?
%
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