Larry and Ally Are Married and File a Joint Return

question 94

Short Answer

Larry and Ally are married and file a joint return.They are considering purchasing a personal residence that will generate two deductions: $10,000 in home mortgage interest and $8,000 in real estate taxes.Their marginal tax rate is 25%.What is the total tax savings if Larry and Ally purchase the residence?

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Definitions:

Telecommunications Technologies

The various technologies used to transmit information over distances, such as telephones, internet, radio, and television.

Electronic Information

Information or data that is stored, processed, and transmitted through electronic means.

Telenutrition

The practice of delivering nutrition counseling and advice through electronic means, such as over the internet or via telephone, allowing for remote dietary guidance.

Telehealth

The use of digital information and communication technologies, such as computers and mobile devices, to access health care services remotely and manage health care.