Answer:
True
Explanation:
Data given in the question
Sale value of the property = $5,000,000
Cost basis of property = $2,750,000
And, the taxable income is $12,150,000
So, based on the above information, the capital gain on the property is
= (Sale value of the property - Cost basis of property) × capital gain tax rate
= ($5,000,000 - $2,750,000) × 15%
= $337,500
We assume the capital gain tax rate is 15%
Hence, the given statement is true
