Annalise is age 19 and in college. Her parents providemore than half of her financial support and decide togift assets that generate $1,600 in dividends to furtherhelp with college expenses. Her parents are in the 37%marginal tax bracket and Annalise is in the 10%.Through income shifting, by what amount did theparents reduce their taxes? [Use Kiddie Tax rules(2023)] [Select best answer from the answer choices]Group of answer choices $0 $557.00 $129.50 $94.50

Given:The parents' marginal tax rate: 37%Annalise's marginal tax rate: 10%The amount of dividends…

Answered: Annalise is age 19 and in college. Her…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

i need the answer quickly
Nadine’s mom and dad are not financially literate, and so Nadine would like you to assist her parents with their situation: Her parents want to know how they can minimize their income tax cost for the current year 2021? What is the maximum tax that can be saved? Here is what her parents’ situation looks like: They are a married couple currently 68 years of age and retired. They have the following incomes for the current year: Dad Mom CPP $9,600 $4,800 OAS $7,400 $7,400 DB Pension $68,200 N/A RRIF N/A $8,000 Assume that their marginal tax rates are to be 20% up to $ 49,030 and on income between $49 000 and $97,000 assume 30%. Once again, they want to know how they can minimize their income tax cost for the current year 2020? What is the maximum tax that can be saved?
Solve ASAP
John and Charlotte are considering contributing $1,000 to their church. This contribution will bring their total itemized deductions to $2,000. Assuming the standard deduction is $10.000 per person and they are in the 15% marginal tax bracket, how much will they save in taxes by contributing this $1,000 to their church? Type your answer here
Liam has a gross income of $120,000 and takes the standard deduction. 1) What are his total taxes due? 2) What is his marginal tax rate? 3) What is his effective tax rate? Round to the neared hundredth of a percent.
You are getting ready to prepare a 2022 tax return for your clients Moose and Suzie Okie and are doing some initial calculations. Moose and Suzie have two children, Arva (age 12) and Ralph (age 9). They have provided you with the following information regarding 2022 relevant activities: Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000. Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month. Property taxes on the residential rental property: $3,700 and property insurance: $1,785. Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm. Moose got lucky and won $4,000 gambling on a trip to Las Vegas. Suzie sold her old car for $4,000. She had originally paid $8,000 for it. She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000. What is the rental net income?
If a person is in the 40% personal income tax bracket and they make a $1000 donation to a not-for-profit corporation, how much would their taxable income be reduced? How much money in taxes would this person save?
Gary, who is single, has adjusted gross income of $ 105,000 and itemized deductions of $15,000. He is considering making a charitable contribution of $5,300 and he is in the 24% tax bracket. Gary could also spend $5,300 on a postsecondary education course that qualifies for the Lifetime Learning Credit. Which is the best tax choice to reduce his overall liability? Make a charitable contribution Spend on a postsecondary education course Best Tax Choice Reduction in tax liability $ LA $ #
Michel has heard of some Canadians that are millionaires with their TFSA’s. If that were the case and they withdrew $1 million dollars from their TFSA account in 2023, how much tax would they pay on the withdrawn funds if they were in a 53.31% marginal tax bracket? Tax calculation on $1 million TFSA withdrawal:
I need help doing this exercise! If some can help me resolve this, I would really be really apreciated!
Troy graduated in civil engineering from Concordia two years ago and decided to work in the remote area of northern Quebec. He is making great money and saving it all. What is Troy's average rate of tax if in 2021 he paid taxes of $58,232.74 on his gross income earned of $135,000? (ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings) A 43.14% В 38.09% 49.97% D 33.29% 29.35%
Nia is 12 years old, and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Nia's parent's tax rate is 35 percent, and Nia's portion of income is taxed at 10 percent, what is Nia's income tax liability? O a $550 Ob $1,925 O $1A50 O&$1,299 co C

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS