Jerome is considering making a $30,000 investment in a venture which its promoter promises will generate immediate tax benefits for him. Jerome, who does not anticipate itemizing his deductions, is in the 30% marginal tax bracket. If the investment is of a type that produces a tax credit of 40% of the amount of the expenditure, by how much will Jerome's tax liability decline because of the investment?
e. None of the above.© BrainMass Inc. brainmass.com June 3, 2020, 7:27 pm ad1c9bdddf
If the investment is of a type that produces a tax credit of 40% of the amount ...
Quick calculations shown and explained to work out how investing will lower Jerome's tax liabilities.