hot seat

This week’s blog will be based on the TV show “Hot Seat”. I will be Robert McGuire and you will be the contestant. Now remember! – it is the “Hot Seat” not “Who Wants to be a Millionaire” because you will not be able to call a friend – you will only have 20 seconds to pick the answer. Read the questions, think about the answers and pick the one that you think is correct. So, are you ready? Close the door, settle down, concentrate and let’s go:

QUESTION 1

If you were offered cash – which option would you pick?

1. $500,000 or
2. $1 doubled 20 times (consecutively)
3. Depends on how much tax I will need to pay in each case
4. $1,000,000 on which you will need to pay tax at your marginal tax bracket.

 THE ANSWER: next week

QUESTION 2

Assume your tax bracket is in the 30% bracket and you have claimed $1,000 as a tax deduction. How much will this benefit you?

1. Full $1,000 because it 100% tax deductible
2. $300 because it is your tax margin
3. $315 you need to add the Medicare Levy
4. None really because I’ve already spent the $1,000 so how would I benefit anything?

 THE ANSWER: next week

QUESTION 3

Which one of the following is a greater benefit to you?

1. tax deduction of $1,000 or
2. tax rebate of $1,000

 THE ANSWER: next week

Just tell me to “LOCK IT IN ROBERT”