Question

Mike pays $8,000 in property taxes but receives a 28% tax deduction for it. What is Mike's net expense for property taxes?

(a) $8,000
(b) $5,760
(c) $2,240
(d) $10,880

Answer 1

Mike's net expense for property taxes is $5,760.

Step-by-step explanation:

The net expense for property taxes can be calculated by subtracting the tax deduction from the total amount paid. In this case, Mike pays $8,000 in property taxes and receives a 28% tax deduction. To calculate the net expense, we need to find 28% of $8,000 and subtract it from $8,000.

28% of $8,000 = $8,000 * 0.28 = $2,240

Net expense = $8,000 - $2,240 = $5,760

Therefore, Mike's net expense for property taxes is $5,760.