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• b.Taxable income of $100,000.
• c.Taxable income of $375,000.
• d.Taxable income of $600,000.
I:1-41
Marginal Tax Rate. Jill and George are married and file a joint
return. They expect to have $425,000 of taxable income in the next
year and are considering whether to purchase a personal residence
that would provide additional tax deductions of $80,000 for mortgage
interest and real estate taxes.
•
a.What is their marginal tax rate for purposes of making this
decision?
•
b.What is the tax savings if the residence is acquired?
I:1-42
Gift Tax. Betty, a married taxpayer, makes the following gifts during
the current year (2015): $20,000 to her church, $50,000 to her
daughter, and $40,000 to her husband. What is the amount of Betty’s
taxable gifts for the current year (assuming that she does not elect to
split the gifts with her spouse)?