Question

Which of the following options represents the tax savings that Rich and Shauna Nielson receive from their investment expenses, assuming they file a joint tax return, itemize deductions, and have a marginal tax rate of 25 percent on ordinary income?

A) $250
B) $200
C) $150
D) $100

Answer 1

Without the specific amount of their investment expenses, it is not possible to calculate the exact tax savings for Rich and Shauna Nielson. The general formula to calculate tax savings is investment expenses multiplied by the marginal tax rate. The answer is not given among options.

Step-by-step explanation:

To determine the tax savings Rich and Shauna Nielson receive from their investment expenses when filing a joint tax return, you would need to know the amount of their investment expenses. However, since the question does not provide this crucial piece of information, I cannot give a precise answer. Generally, to calculate tax savings, multiply the investment expenses by their marginal tax rate. If their investment expenses were $1,000, for example, their tax savings would be 25% of $1,000, which equals $250.

Without the actual expense amount, I can only give a formula: Tax Savings = Investment Expenses × Marginal Tax Rate. To find the tax savings, you would replace 'Investment Expenses' with the actual amount spent by Rich and Shauna Nielson.

Hence, The answer is not given among options.