Perry Bell paid $6,438 of state and local property and income tax this year. Compute the after-tax

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Perry Bell paid $6,438 of state and local property and income tax this year. Compute the after-tax cost of these payments assuming:

a. Perry doesn’t itemize deductions on his Form 1040.

b. Perry itemizes deductions, has a 24 percent marginal tax rate on regular taxable income, and didn’t pay AMT.

c. Perry itemizes deductions, has a 32 percent marginal tax rate on regular taxable income, and paid $2,875 AMT.

Assume the taxable year is 2018.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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Question Posted: Jan 18, 2019 06:46 AM

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Perry Bell paid $6,438 of state and local property and income tax this year. Compute the after-tax

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a Perry receives no tax savings from his property tax payments because he does...View the full answer

Principles Of Taxation For Business And Investment Planning 2019 Edition

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