I bit..............Kevin M wrote:So join the party and be one of the people who is cracking you up.kaneohe wrote: Perhaps the wiki needs to have some numerical examples to really drive the concepts home.
Kevin
How about a sequence of questions or ilustrations such as:
The tax table lists the 2014 boundary/border/barrier between 15% and 25% taxable income as 73800:
1a) Taxable income is all ordinary income 10K < that dividing line. Ordinary income increases by 10K. What happens to tax?
1b) Replace ordinary income w/ LTCG/QDIV in 1a)
2a) Taxable income is all ordinary income at that dividing line. Ordinary income increases by 10K. What happens to tax?
2b) Replace ordinary in w/ LTCG/QDIV in 2a)
Questions 1 & 2 illustrate the ordinary income and LTCG/QDIV rates in various areas.
3)Taxable income which includes 20K of LTCG/QDIV is 10K less than the boundary
3a) Ordinary income increases by 10K. What happens to the tax?
3b) Ordinary income increases by 20K. What happens to the tax?
3c) Ordinary income increases by 30K. What happens to the tax?
3d,e,f) Replace ordinary income w/ LTCG/QDIV in 3a,b,c