Question 11The 2021 standard deduction is $12,600 and deductionsfor state and local taxes are limited to $10,000. You arealready choosing to itemize your deductions becaue ofcharitible contributions. You expect to pay $8,000 of stateincome taxes in 2021 and you are looking at the taxbenefits associated with purchasing a single family home asyour primary residence. You estimate that the mortgageinterest in 2021 will be $21,000 and the property taxes willbe $2,000. What is the tax benefit associated withhomeownership if your marginal tax rate is 22%?red

The annual sum given by landowners to the local authority or municipality entity in his region is…

Answered: The 2021 standard deduction is $12,600…

Business

Accounting

The 2021 standard deduction is $12,600 an for state and local taxes are limited to $10,0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 9DQ: LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on...

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?
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