How much more did they save in taxes from home ownership

Assignment Help Cost Accounting

Reference no: EM131884736

Problem

John and Sarah bought a home last year and paid the following housing expenses during the year:

Mortgage interest $14,500
Mortgage principal $1,235
Property taxes $4,250
Homeowner's insurance $2,740
Maintenance $2,150
Utilities $3,900

Assuming they are in the 28 percent marginal tax bracket, their standard deduction for the year is $11,600 and they have no additional expenses that they can itemize, how much more did they save in taxes from home ownership?

Reference no: EM131884736

Questions Cloud

Identify each of the given transaction as a deferred revenue : Identify each of these transactions as a deferred revenue, deferred expense, accrued revenue, or accrued expense.

What was ecuyers free cash flow : During 2014, Ecuyer industries reported cash provided by operations $397,000,000. Cash used in investing 343,000,000.

Prepare the journal entry to record interest on july : Prepare the journal entry to record interest on July 31, 2016. Prepare any entries required at December 31, 2016.

What are the transfer tax consequences of the transactions : In 2009, Jessica placed $250,000 in a savings account listing ownership as follows: "Jessica, Kerri, and Jason, joint tenancy with the right of survivorship."

How much more did they save in taxes from home ownership : Assuming they are in 28 percent marginal tax bracket, their standard deduction for the year is $11. How much more did they save in taxes from home ownership?

What monthly interest rate is being charged : In 2014, the average debt for college student loans is $32300. This amounts to a $300 monthly payment for a "standard" loan payment plan over 10 years.

Calculate the price index for the given year : In 2010, the cost of a market basket of goods was $2,000. In 2012, the cost of the same market basket of goods was $2, 100. Use the price index formula.

What is the present value of the given amount today : Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?

Record the appropriate journal entry : Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions.

User Account

All Pages