Compute the annual income tax savings resulting

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Question - Ms. Jolly recently made a gift to her 19-year-old daughter, Alison. Ms. Jolly's marginal income tax rate is 37 percent, and Alison's marginal income tax rate is 12 percent.

Required -

1. Compute the annual income tax savings resulting from the gift when the gift consisted of rental property generating $19,100 annual rental income to its owner.

2. Compute the annual income tax savings resulting from the gift when the gift consisted of a $4,625 interest coupon from a corporate bond owned by Ms. Jolly.

3. Compute the annual income tax savings resulting from the gift when the gift consisted of a $2,200 rent check written by the tenants who lease rental property owned by Ms. Jolly.

4. Compute the annual income tax savings resulting from the gift when the gift consisted of a corporate bond paying $13,300 annual interest to its owner.

Reference no: EM133187297

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