Question

Zach and Melissa Nieland file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielands incur $2,400 in miscellaneous itemized deductions, excluding investment expenses. They also incur $1,300 in noninterest investment expenses during the year. What tax savings do they receive from the investment expenses under the following assumptions: (Round your answer to the nearest whole dollar amount.)

Answer 1

Nieland haue牛3,700 (2,40° t l3oN investment expenses These dedtible ana ond deductible to the extent thea eare ed 2y。 CI and $1,s30 e the 37o s d ctible . The deductible parti en İs first tye ated as investment amd tho men investment miscellaneous itemred dtins . In this Stuation, al 1,30o the investment expentes ane deductible ($1230 the othen miscellanenee itemied dedetions ar de deretilele taz benekit the inwestment expo- 32 5

, 2,76อ. D) l-S ค61 is t 139,000 , 2:/. Ob A(รา } i s So, In this case teized de deuctiens ane dedctible Be cau ho dedacthibla pantion he xpense, all 후 920 tho diductible mis cecuaneu iteie de ductions Conside red to be investmant ezpenses a20 4 920 2 5 ./-m angina ( tax Tala