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Nataly_w [17]
4 years ago
12

Alison Jacobs (single) purchased a home in Las Vegas. Nevada for $400,000. She moved into the home on September 1, year O. She l

ived in the home as her primary residence until July 1 of year 4 when she sold the home for $675.000. If Alison's tax rate for long term capital gain is 15 what amount of tax will Alison pay on the $275,000 gain?
Business
1 answer:
Mrac [35]4 years ago
3 0

Answer:

$3,750

Explanation:

Capital Gain tax is paid on the sale property value. According to tax rule if you sale your residence building the first $250,000 is exempt from the tax and the amount above this value will be taxed using rate of 15%.

Total Amount of Gain = $275,000

Amount Exempted = $250,000

Taxable value = $275,000 - $250,000 = $25,000

Tax value = $25,000 x 15%= $3,750

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