Javier and Anita Sanchez purchased a home on January 1, 2021, for $852,000 by paying $284,000 down and borrowing the remaining $568,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. Javier and Anita file a joint return, have great eyesight, and are under 60 years of age. The interest expense is their only itemized deduction for the year. Their marginal tax rate is 32 percent. What is the after-tax cost of their 2021 interest expense? (Round your intermediate calculations and the final answer to the nearest whole dollar amount.) After-tax cost of the interest expense

Javier and Anita Sanchez purchased a home on January 1, 2021, for $852,000 by paying $284,000 down and borrowing the remaining $568,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. Javier and Anita file a joint return, have great eyesight, and are under 60 years of age. The interest expense is their only itemized deduction for the year. Their marginal tax rate is 32 percent. What is the after-tax cost of their 2021 interest expense? (Round your intermediate calculations and the final answer to the nearest whole dollar amount.) After-tax cost of the interest expense

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 37P

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