Chapter1 & Part 8 - Jimmy

Chapter1 & Part 8 - Jimmy - Burkett Tax I Chapter 1...

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Burkett – Tax I – Chapter 1 & Part of 8 1 Marginal Tax Rate Examples Jane is single w/ taxable income of 100K What is Jane’s MTR? After Tax Rate of Return Considering investing 10 K in a CD earning 6% or a Richland County bond (tax exempt) earning 5%. ATR for CD & Bond/Which should Jane invest in? What if her MTR = 10%? After Tax Benefit Look at this a different way. What is Jane’s ATB from the CD & Bond? What if her MTR = 10%?
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Burkett – Tax I – Chapter 1 & Part of 8 2 Marginal Tax Rate Examples Contd. After Tax Cos t Jane is paying rent of 11K/year and is considering purchasing the house from her landlord with the following costs: Mortgage interest (tax deductible) $10K /year Principal payment (non deductible) 1K/year Prop Tax (tax deductible) 1K/year, Homeowners Insurance (non deductible) 1K/year Total costs to purchase $13K/year Taxable income is still $100K ATC of Rent? ATC $13K purchase costs?
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Burkett – Tax I – Chapter 1 & Part of 8 3 Standard Deductions Bill & Jane are MFJ. Bill is 66 & blind. Jane is 64.
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Chapter1 & Part 8 - Jimmy - Burkett Tax I Chapter 1...

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