An investor who has $75,000 in taxable income purchases a building that produces another $15,000 in taxable income.What is the investor's marginal tax rate?

Question

Quizplus · Accepted Answer

To calculate the investor's marginal tax rate, we need to first determine their taxable income with the additional $15,000 from the building.

$75,000 (original taxable income) + $15,000 (income from building) = $90,000 (total taxable income)

Using the 2021 tax brackets for a single filer, the marginal tax rate for a taxable income of $90,000 is 31%. Therefore, the answer is D.

An Investor Who Has $75,000 in Taxable Income Purchases a Building