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So then, the theft loss and education saved 2792.24 in taxes and interest income of 548 [insert] 68 from Freedom Federal 480 from Pacific Bank [/insert] was taxed at $241.12 and EDITX royalties of 732 were taxed at $322.08.
Now there is the matter of taxes saved by capital loss. This does reduce bracket below 44%.
We had 35052.00
- 6346.00 education
+548 interest
+732 EDITX
- 1000 exemption
= 28986.00
This leaves 186 at the bottom of the 44% bracket. The rest of the loss is taxed at 39%, So tax saved by loss of 1085 is
.44 * 186
+ .39 * (1085 - 186) = 432.45
So plaqying the market cost 652.55. See also the financial analysis in the diary book.
Image 39
this balances against the tax return:
9744.88
- 2792.24
+ 241.12
+ 322.08
- 432.45
7083.39 [total]
Now this is subject to lots of rounding error since all amounts on the tax return were in one dollar units. In fact it was determined that 7083 was owed, and the withheld amount of 10754 yielded a $3671 refund. Since the actual withheld amount was 10753.95, the actual total tax was 7082.95. Consequently there is a rounding adjustment of (.44) in the taxes column where net income is found.
The 11206.82 for taxes on 1979 MicroSoft incomes is composed of
9744.88 federal
1403.78 FICA
58.16 State NM
11206.82 [total]
