Advantage Software LLC                      Real Estate Investment Software
    "Innovative Real Estate Software Solutions"                         Income Tax Bracket / Marginal Tax Rate
   
 
  Home   Order Software   Software Description   Sample Reports   Sample Graphs    FAQ    Advanced Topics  
 
  Advanced Topics  
  Break-Even Point  
  Capitalization Rate  
  Capital Gains Rates  
  Cash on Cash Return  
  Debt Coverage Ratio  
  Deducting Rental Losses  
  Depreciation  
  Discounted Cash Flows  
  Bank Foreclosures  
  Tax Foreclosures  
  Gross Rent Multiplier  
  Income Approach  
  Internal Rate of Return  
  Loan-to-Value Ratio  
  Modified IRR  
  Net Income Multiplier  
  Net Operating Income  
  Operating Expenses  
  Operating Expense Ratio  
  Ratios - Range of Values  
  Real Estate Leverage  
  Loan Points  
  Pyramiding  
  Beyond Rich Dad  
  Real Estate Appreciation  
  Return on Investment  
  Tax Brackets  
  Tax Deductions  
  Website Search  
                                             
   
 
 
     Income Tax Bracket /  Federal Marginal Tax Rate 
 
                                                   (See 2013 income tax rate table below)
 
  It is important to understand how your income tax bracket / federal marginal tax rate impacts your taxable income.  Being in a 28% income tax bracket does not mean that all of your income is taxed at 28%.  Your income tax bracket only pertains to that portion of your income that falls between the lower and upper end of your income tax bracket range.  For example, in the income tax rate table below, if you are married and filing jointly and you are in a 28 % income tax bracket, only that portion of your income that exceeds 146,400 and is less than 223,050 will be taxed at the 28 % income tax rate.  For an income of 154,400, only 8,000 of your income will be taxed at 28%.  That is 154,400 - 146,400.  Note that all of your income between 72,500 and 146,400 is taxed at 25%.  In summary, the tax rate that you pay is less than your income tax bracket since it is applied only to the last dollars that you make.

What income tax bracket ( Marginal Tax Rate) would you enter in the On Target real estate software if you are married filing jointly and you earn 70,000 from sources other than income property and you are considering purchasing an income property with a $20,000 taxable income?  Your taxable income from all sources after the purchase of the income property would be 90,000 dollars which would put you in a 25% tax bracket.  You would enter 25 for your Federal Marginal Tax Rate.

 
 
 
 
 
 
               Income Tax Rate Table for 2013:
 
 
  Single Married - Joint Head of Household Married - Separate
10% 0 - 8,925 0 - 17,850 0 - 12,750 0 - 8,925
15% 8,925 - 36,250 17,850 - 72,500 12,750 - 48,600 8,925 - 36,250
25% 36,250 - 87,850 72,500 - 146,400 48,600- 125,450 36,250 - 73,200
28% 87,850 - 183,250 146,400 - 223,050 125,450 - 203,150 73,200 - 111,525
33% 183,250 - 398,350 223,050 - 398,350 203,150 - 398,350 111,525 - 199,175
35% 398,350 - 400,000 398,350 - 450,000 398,350 - 425,000 199,175 - 225,000
39.6% 400,000 and up 450,000 and up 425,000 and up 225,000 and up

 

  If you are thinking about purchasing Income Property.  The On Target real estate investment software gives you a huge advantage over the casual investor.  On Target generates many different reports and graphics to improve the decision making process.  The On Target real estate analysis software helps you determine the effect of state and federal income tax rates on your income property's cash flows and sales proceeds.  On Target applies your state and federal income tax rate / income tax bracket to the income from your rental property.   Don't make a large investment without understanding the impact of taxes on your profits.  On Target costs just $97.99 and provides in-depth financial analysis.   To order the On Target real estate software, click on  Purchase Software   Be sure to check out the many financial features offered by this unique software.  Software Features    The On Target real estate software includes a 30 day money back guarantee and free support.

                                © Copyright 2000 - 2013 Advantage Software LLC