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Revision as of 10:03, 13 May 2026

Note: The writer is not really CPA or tax professional. This article is for general information purposes, and might not be construed as tax aid. Readers are strongly motivated to consult their tax professional regarding their personal tax situation.

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For example, most men and women will along with the 25% federal income tax rate, and let's guess that our state income tax rate is 3%. Supplies us a marginal tax rate of 28%. We subtract.28 from 1.00 passing away.72 or 72%. This means transfer pricing in which a non-taxable rate of 3 or more.6% would be the same return as a taxable rate of 5%. That was derived by multiplying 5% by 72%. So any non-taxable return greater than 3.6% would be preferable several taxable rate of 5%.

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