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Required informetion [The following information apolies to the questions displayed below] Javier and Anita Sanchez purchased a home on January 1,2023, for $600,000 by paying $200,000 down and borrowing the remaining $400.000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the firs? five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sarichezes' marginal tax rate is 32 percent: a. What is the after-tax cost of the interest expense to the Sanchezes in 2023 ? Requlred information : The following information applies to the questions displayed beliowt Javier and Anita Sanchez purchased a home on January 1.2023, for $600,000 by paying $200,000 down and borrowing the remaining $400,000 With a 7 percent loan secured by the home The loan requires interest-only payments for the first five years. The Sanchezes would itemize deductions even ir they did not have any deductible interest. The Sanchezes' marginal tax rate is 32 percent. b. Assume the original facts, except that the Sanchezes rento home and pay $21,000 in reat curing the year: What is the aftertax cost. of their rental poyments in 2023 ? Requlred Information The following intormation applies to the ouestions displayed beiow Javer and Anita Sanchez purchased a home on January 1, 2023, ror \$600,000 by paying $200.000 down and borrowing the remaining $400.000 win a 7 percent loan secured by the home the loan requires interest-only poyments for the first five years. The sanchezes would temize deductions even if iney did not hove any deductible interest The sanchezes! marginal tox rate is 32 percent c. Assuming the interest expense is their only tremized deduction for vie year and that Javier and Anita file a joint retum. have great eyesight, and are under 60 years of age. what is the oftertox cost of the 2023 interest expense

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