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:

Natural Selection

A fundamental mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring.

Genotypes

The genetic makeup of an individual, including both visible characteristics and those not outwardly apparent.

Adaptive

Characterizes the ability of an organism or system to adjust or change in response to new environments or conditions.

Specialized Structures

Physiological or anatomical parts of an organism adapted for a specific function or environment.