Jeff earned $84 on $1,200 invested in a high-yield money market account. He is taxed at 22 percent of his earnings. What is the after-tax yield on his investment?
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Jeff earned $84 on $1,200 invested in a high-yield
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- Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of 100,000 and had the following capital transactions to report on their income tax return: What is the amount of capital loss carryover to year 15? a. (155,000) b. (152,000) c. (132,000) d. (125,000)"At the beginning of the year, Mr. Lanier put $50,000 cash into Investment X. At the end of the year, he received a check for $2,800, representing his annual return on the investment. Mr. Lanier’s marginal tax rate on ordinary income is 37 percent. However, his return on Investment X is a capital gain taxed at 20 percent. Compute the value of the preferential rate to Mr. Lanier. "
- Marwin wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified.Samuel Jenkins made two invstments, the first was 13 months ago and the second was two months ago. He just sold both investments and has a capital gain of $3,000 on each. If Samuel is in the 28 percent tax bracket, what will be the amount of capital gains tax on each investment?John is single and has AGI of $250,000. He also made the following investments. What is his total Net Investment Income Tax for the gains and losses in 2020? Long Term or Short Term Total Gain/Loss Long Term $3,500 Short Term -$8,500 Long Term -$10,000 Short Term $500 Short Term -$3,000
- At the beginning of the year, Mr. Lanier put $50,000 cash into Investment X. At the end of the year, he received a check for $2,800, representing his annual return on the investment. Mr. Lanier’s marginal tax rate on ordinary income is 37 percent. However, his return on Investment X is a capital gain taxed at 20 percent. At the beginning of the year, Mr. Lanier could have invested his $50,000 in Business Z with an 8 percent annual return. However, this return would have been ordinary income rather than capital gain. Required: Considering the fact that Mr. Lanier could have invested in Business Z, how much implicit tax did he pay with respect to Investment X? Did Mr. Lanier make the correct decision by putting his $50,000 into Investment X instead of Business Z?Gina Mendonca has marginal tax rate of 26%. She earns $82,434 every year and contributed $6,905 to her RRSP this year. What is the amount of her tax savings?Walter earned 85,000 taxable income last year . What is his effective tax rate ?
- George, a single taxpayer, earns $80,000 in taxable income and $6,000 in interest from an investment in city of Normal Bonds. What is his effective tax rate (round to two decimal places)? What is his average tax rate?Michael is single, earns $95,000 a year, and paid $3,000 in student loan interest. How much of the student loan interest can Michael deduct on his tax return?This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000.He estimates that his tax withholding from his employer will be $7,800. a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty?
