Jillian and Greg are married and file a joint return. They expect to have $$420,000$ of taxable income in the next year and are considering whether to purchase a personal residence that would provide additional tax deductions of $$126,000$ for mortgage interest and real estate taxes.

View the $2022$ tax rate schedule for the Married Filing Joint filing status.

Read the requirements.

Requirement $a.$ What is their marginal tax rate for purposes of making this decision? $($Enter amounts as percentages to one decimal place.$)$

What is the marginal tax rate if the personal residence is not purchased?

What is the marginal tax rate if the personal residence is purchased?

$32\%$

purchased?

$24\%$

Requirement $b.$ What is the tax savings if the residence is acquired? $($Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest cent.$)$