Latesha, a single taxpayer, had the following income and deductions for the tax year 2016: a. Compute
Question:
a. Compute Lateshas taxable income and federal tax liability for 2016 (round to dollars).
b. Compute Lateshas marginal, average, and effective tax rates.
c. For tax planning purposes, which of the three rates in Part b is the most important?
Transcribed Image Text:
$ 80,000 25,000 10,000 5,000 INCOME: Salary Business Income Interest income from bonds Tax-exempt bond interest TOTAL INCOME 120,000 $ 9,500 20,000 4,050 DEDUCTIONS: Business expenses Itemized deductions Personal exemption TOTAL DEDUCTIONS 33,550
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a b Marginal rate 25 From tax rate schedule Average rate 1981 1613481450 ...View the full answer
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Related Book For
Federal Taxation 2017 Individuals
ISBN: 9780134420868
30th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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