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zubka84 [21]
2 years ago
12

The decision of whether to rent or buy housing is a personal decision that is based on both your lifestyle and your finances. Wh

ile most financial experts argue that the financial aspect of the decision is important, it is also important not to base your rent-or-buy decision solely on the numbers. Your personal needs and housing market conditions are important.
However, it is still necessary to perform the financial analysis. Before you conduct a rent-or-buy analysis, it is critical that you understand how the U.S. tax code creates tax shelters for homeowners.

The tax deductibility of the interest ____________ on a mortgage and the__________ incurred on your home create a tax shelter for the___________ , which ____________your taxable__________ and tax liability.

The standard deduction for mortgage interest under the 2014 U.S. tax code is:

a. $5,900 for single individuals and $11,800 for married couples filing jointly
b. $12,600 for single individuals and $6,300 for married couples filing jointly
c. $6,300 for single individuals and $12,600 for married couples filing jointly
Business
1 answer:
nordsb [41]2 years ago
3 0

Answer:

Rent or Buy Housing and the U.S. Tax Code

The tax deductibility of the interest ___paid___ on a mortgage and the___costs__ incurred on your home create a tax shelter for the___taxpayer___ , which ___reduces___your taxable__income__ and tax liability.

The standard deduction for mortgage interest under the 2014 U.S. tax code is:

c. $6,300 for single individuals and $12,600 for married couples filing jointly

Explanation:

Currently, the IRS allows taxpayers to deduct home mortgage interest on the first $750,000 ($375,000 if they are married but filing separately) of their indebtedness.  However, higher limitations ($1 million) or ($500,000, if married but filing separately) apply if the taxpayers are deducting mortgage interests from their indebtedness incurred before December, 2017.

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Find the present value of the following stream of cash flows assuming that the firms opportuiny costs is 9 percent. 1-5 years 10
Yanka [14]

Answer:

   ∑( Cash flow × PVF) = 79,347

Explanation:

Given:

Opportunity cost = 9%

Cash flow for 1-5 years = 10,000

Cash flow for 6-10 years = 16,000

Now,

Present value factor (PVF) = \frac{\textup{1}}{\textup{(1 + 0.09)^n}}

here, n is the year

For year 1 to  5

Year             Cash flow             PVF             Cash flow × PVF

1                     10000             0.9174             9174

2                     10000             0.8417             8417

3                      10000             0.7722             7722

4                      10000             0.7084             7084

5                      10000             0.6499             6499

for years 6 to 10

Year             Cash flow             PVF             Cash flow × PVF

6                      16000              0.5963             9540.8

7                      16000              0.547             8752

8                      16000              0.5019             8030.4

9                      16000             0.4604             7366.4

10                      16000             0.4224             6758.4

========================================================

                                          ∑( Cash flow × PVF) = 79,347

========================================================

taking the PVF to 5 decimal places will make 79,347 ≈ 79,348

8 0
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Answer:

b. The wants and needs of individual customers can be more directly targeted

Explanation:

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a. A large pool of potential customers exists.

Thats one of the alternatives in order to use mass marketing in order to indentify potential customers.

b. The wants and needs of individual customers can be more directly targeted.

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Thats one alternative that can be applied if we use mass marketing

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That's one alternative since we can see and create potential customers with this alternative.

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Answer:

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I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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