Question
Rental costs Purchase costs Annual rent $7,380 Annual mortgage payments $9,800 ($9,575 are interest) Insurance $145 Property taxes $1,780 Security deposit $650 Down payment/closing costs
Rental costs Purchase costs Annual rent $7,380 Annual mortgage payments $9,800 ($9,575 are interest) Insurance $145 Property taxes $1,780 Security deposit $650 Down payment/closing costs $4,500 Capital growth $225 Insurance /maintenance $1,050 Estimated annual appreciation $1,700 Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Suppose this person has other tax deductions that exceed the amount of the standard deduction
. to. Calculate the total rental cost and the total purchase cost. (Do not round intermediate estimates. Round your answers to the nearest whole dollar.) Rental cost $ Purchase cost $
b. | Would you recommend buying or renting? | ||||
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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