Know your taxes!!

€�The hardest thing in the world to understand is the income tax”. WHO SAID IT?

What is the only other country to require its citizens to pay taxes on income if they work and live outside the country?

According to the Tax Foundation, Americans paid a collective $_________ in federal, state, and local taxes last year.

How many states have no income tax?

The top 0.1% of Americans pay roughly ____ % of total income tax collected.

Today, the highest marginal income tax bracket is 37% but it has been much higher. What was the highest marginal rate in 1944?

Which of the following celebrities DIDN’T serve time for tax evasion?

In New York, cutting a bagel turns it into prepared food, which means the store must add a 9% sales tax to the price.

Qualified home mortgage interest, investment interest, and charitable contributions are all examples of deductible expenses that reduce a taxpayer’s AGI.

Abby and Ben have assets of $10mm with a cost basis of $2mm. The assets are held in a joint rev trust. Abby gets hit by a bus, so the assets get a step up in basis to $_____. When Ben dies, the assets are worth $15mm and his children inherit the assets with a basis of $_____.

Bob and Jane have $500K outstanding on their original mortgage. They refinance the loan for $2mm, taking out $1.5mm cash. They use $1mm of the proceeds to remodel their home and deposit the remaining $500K into their checking account with the goal of using it to pay for their kids’ college expenses in a few years. What percentage of the new loan interest is deductible?