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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Related Book For
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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