All categories

3 years ago

Tax that you pay when making a profit from selling a house is an example of:

Business

2 answers:

Monica [59]3 years ago

7 0

The option (A) is correct.

Tax that you pay when making a profit from selling a house is an example of capital gain tax.

Further Explanation:

Capital Gain Tax

Capital gain tax is a direct tax. It a on the capital gain earned at the time of the sales of fixed assets. Capital gain is the difference between the sales value and the purchase value of an asset. When the owner of an asset sells the asset in the market, and the sales price is higher than the purchase price, then the difference is known as a capital gain or profit. The government charges capital gain tax on the capital gain or profit. Capital gain tax varies from 0% to 20%. Capital gain tax differs from asset to asset.

Tax on the profit of sales of a house:

The tax on the profit of sales of a house is an example of capital gain tax.

House is a fixed asset. When the owner of the house sells, it then the profit on the sales of the house is capital gain. The government would charge capital gain tax on the capital gain (profit) earned on the sales of the land.

Thus, the taxpayer has to pay capital gain tax on the profit earned from the sales of the house.

Learn more:

1. Learn more about the capital gain tax

brainly.com/question/2617534

2. Learn more about the state income tax

brainly.com/question/2996312

3. Learn more about the personal taxation

brainly.com/question/1762937

Answer details:

Grade: Senior School

Subject: Taxation

Chapter: Capital Gain Tax

Keywords:Tax, making, profit, from selling a house, example, Capital Gains Tax, Sales Tax, Income Tax, Property Tax.

UkoKoshka [18]3 years ago

4 0

Tax that you pay when making a profit from selling a house is an example of: A. Capital Gains Tax
Every time you sell an asset that is not under investment category, The difference between your selling price with the initial cost when you buy that asset should be recorded as a Capital Gain.
In United states, you're inclined to pay around 28 % from the total capital gain as Capital Gain Tax

You might be interested in

You have just purchased a new warehouse. to finance the purchase, you’ve arranged for a 30-year mortgage loan for 80 percent of

Alexxx [7]

We are asked to find the APR on this load.
Given:
Purchased price: $2,900,000
Monthly payment: 14,900
Amount borrowed: 0.80($2,900,000) = $2,320,000

Using the PVA equation:
PVA = $2,320,000 = $14,900 [{1-1/(1+r)]^360}/r]
r = 0.560%

APR is the monthly interest rate times the number in months of the year.
APR = 12(.560) = 6.72%

3 0

3 years ago

Read 2 more answers

Obama Company has identified that Bill Clinton’s receivable account of $100 is uncollectible. What is the journal entry needed t

DerKrebs [107]

Answer:

Allowance for Doubtful Accounts 100 Accounts Receivable 100

Explanation:

The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the trade receivable and utilizes the allowance provided for

When allowance is estimated

Bad Debts (debit)

Allowance for doubtful debts (credit)

When the actual figure of the amount that have gone wrong is obtained

Allowance for doubtful debts (debit)

Account Receivable (credit)

4 0

2 years ago

A firm uses 80 hours of labor and 6 units of capital to produce 10,000 gadgets per day. Labor's marginal product is 4 gadgets

Andreas93 [3]

Answer:

Use more labor and fewer capital.

Explanation:

Given that,

For producing 10,000 gadgets,

Labor hours use = 80

Capital = 6 units

Marginal product of labor = 4 gadgets per hour

Marginal product of capital = 20 gadgets per unit

Cost of each unit of labor = $8 per hour

Cost of each unit of capital = $50 per unit

Therefore,

Marginal product per dollar for labor is as follows:

$\frac{MP_{L} }{w} =\frac{4}{8}$

= 0.5

Marginal product per dollar for capital is as follows:

$\frac{MP_{k} }{r} =\frac{20}{50}$

= 0.4

Hence, the marginal product per dollar for labor is greater than the marginal product per dollar for capital, which means that the firm should use more labor and fewer capital.

5 0

3 years ago

If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what k

BigorU [14]

Answer:

industrial products

Explanation:

A company that does this and mostly favors a push strategy is usually selling industrial products. That is because a push strategy focuses on taking the product to the potential customer and showing them how it works as well as how it can benefit them, therefore pushing the product on them. Industrial Products are great for such a strategy since they require actual demonstration and can easily show the potential customer the actual value that the product can provide.

3 0

3 years ago

SMITH FAMILY'S 2018 TAX SCENARIOJoseph L. Smith (age 45, Social Security number 145-26-9210) and Rita M. Smith (age 43, Social S

Neporo4naja [7]

Answer:

ssdfgfssssdffgggtwaaad cffddsaaserrtygttrreesss1 ffdde3455 re wwwertfsassfc cddwwadrtggcccxzds

7 0

3 years ago