The Following Is a Listing of Tax Considerations for John

question 118

Essay

The following is a listing of tax considerations for John and Jane Alexander, who file jointly and have two children.
$\begin{array}{lc}\text { John's salary } & \$ 45,000 \\\text { Jane's salary } & 50,000 \\\text { Real estate taxes } & 4,000 \\\text { Interest from savings ac count } & 1,500 \\\text { Interest from Arizona bonds } & 2,000 \\\text { Interest on home mortgage } & 3,000 \\\text { Contributions to charities } & 1,500 \\\text { Gain on sale of stock held for } 5 \text { years } & 6,000\end{array}$ Assume the following hypothetical tax table:
$\begin{array}{ll}0-\$ 10,000 & 10 \% \\\$ 10,000-\$ 35,000 & 15 \% \\\$ 35,000-\$ 65,000 & 25 \% \\\text { over } \$ 65,000 & 30 \%\end{array}$ The personal exemption rate is $3,050
The long-term capital gains rate for this family is 18%.

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Definitions:

Collective Efforts

The combined and coordinated actions or endeavors of a group of people working towards a common goal or objective.

Public Needs

Refers to the requirements or desires that are common among the general population or a community, often used to guide government policies or initiatives.

Public Service

Services provided by the government or public entities to meet the needs of the public and enhance the welfare of the community.

Earned Income

Money received from work performed, such as wages, salaries, or tips.