Pavel and his spouse Imani just graduated from graduate school and found jobs. Pavel is 29 years
Fantastic news! We've Found the answer you've been seeking!
Question:
1. What amount do each of them contribute to their retirement per year?
2. Can they contribute more towards their retirement per year in a tax-efficient manner?
3. What is their annual marginal tax rate?
4. What is their annual effective tas rate?
5. How much was their mortgage when they bought their house?
6. How much is outstanding on their current mortgage?
7. How much will the mortgage on the new house be, assuming a 10% down payment is required?
8. What is the annual cost to bring Ziri into their home?
9. What is their net income after tax and contributions?
10. If they sell the current home, what other income or savings will they have to put towards the new
home assuming Ziri has moved in with them?
11. What is their net savings after they purchase the new home?
After responding to these questions you can give Imani and Pavel a general commentary on whether
or not they should purchase the home and the reasons why or why not. What will you tell them?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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