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Unformatted text preview: if his AGI was less than $150,000 in the previous year, he could avoid penalties by paying 100% of his previous year tax. D. Tex’s marginal rate is 25% because his income is $77,645(line 43, form 1040). This puts him in the $34,000-$82,400 bracket of 25% 3. Extra Credit Tex’s $1,818 portion of the building depreciation was calculated on a straight-line basis. To get this amount use the amount that Tex and his father built the cabin for in 2006, which is $100,000. Next you need the usefil life of the property, which is 27.5 years. Calculations: $100,000/27.5yrs= $3,636 per year Tex owns 50% of the property, so his portion is: $3,636 x 50%= $1,818....
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- Fall '07
- Taxation in the United States, Capital gains tax in the United States, A. Tex Payer