Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200.000...
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Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200.000 down and borrowing the remaining $400,000 with a 7 percent loan secured by the home. The loan requires interest only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes marginal tax rate is 32 percent c. Assuming the interest expense is their only itemized deduction for the year and that Javier and Anita file a joint return, have great eyesight, and are under 60 years of age, what is the after-tax cost of their 2021 interest expense After-tax cost of the interest expense Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200.000 down and borrowing the remaining $400,000 with a 7 percent loan secured by the home. The loan requires interest only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes marginal tax rate is 32 percent c. Assuming the interest expense is their only itemized deduction for the year and that Javier and Anita file a joint return, have great eyesight, and are under 60 years of age, what is the after-tax cost of their 2021 interest expense After-tax cost of the interest expense
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Answer c Explanation 26848 4000007 Standard deduction 2019 Interest before tax expense Less Tax Ga... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2016
ISBN: 9781259334870
7th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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