Determine the tax value of the forms of relief – Project Management
Throughout the textbook, it has been stated that tax relief can come in several forms. Assuming that the taxpayer in question is in a 28% marginal tax rate bracket and the time value of money is 6%, determine the tax value of the following forms of relief:
a. A $2,000 item of income that is excluded from income
b. A $2,000 expenditure that is deductible in computing taxable income
c. A $2,000 expenditure that is eligible for a 10% tax credit
d. A $2,000 item of income that is deferred for five years (Assume no change in the marginal tax rate.)
