St Jude Home Question (1 Viewer)

[gwballin]

2. The 39.6% would only apply for income over $450,000 (MFJ), income less than that would have a lower rate.

I agree, I said as much in post 16.

To settle this once and for all, assuming a married couple with no children, no other income (not realistic), no deductions for Schedule A (also not realistic), and using 2012 tax tables with a maximum tax rate of 35% (2013 tables are not out yet), the taxable income would be $561,450, and the tax would be $105,062.

For an ETR of 18.27% far less than the 35% marginal tax rate you used because winning the house puts them in the top bracket. That's the point I've been making since post 16.