US Tax question:
Annie's home was featured on ABC Extreme Home Makeover. The show transformed her small 2 bedroom rundown bungalow into a beautiful 3-story, 6 bedrooms, 5 full bathroom mansion, complete with a swimming pool. The fair market value of the improvements was estimated to be $ 850,000. Annie called in distraught because her property tax bill was over $ 10,000, and she had no means of paying the bill. She also wanted to know how much income tax she had to pay on this 'wonderful' event.
SHE HAS FUNDS TO INVEST IN THE HOUSE SO SHE HAD EARNED $850000 IN A YEAR. SHE DO NOT HAVE FUND TO PAY TAX BILL SO THAT IS NOT COUNTED AS INCOME .
SHE FALLS INTO THE TAX SLAB OF 37% SO IT IS 850000*37%= 314500
SO SHE HAS TO PAY TAX OF RS 314500.
US Tax question: Annie's home was featured on ABC Extreme Home Makeover. The show transformed her...