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Latest revision as of 22:21, 1 September 2026

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For example, most persons will along with the 25% federal tax rate, and let's guess that our state income tax rate is 3%. Gives us a marginal tax rate of 28%. We subtract.28 from 1.00 permitting.72 or 72%. This means that a non-taxable price of interest of 9.6% 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% might possibly be preferable to a taxable rate of 5%.

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No Fraud - Your tax debt cannot be related to fraud, to wit, you must owe back taxes a person failed with regard to them, not because you played funny on your tax profit.

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