Antonio is single and has taxable income of $170,000 without considering the sale of a capital asset (land held for investment) in September of 2018 for $25,000. That asset was purchased six years earlier and has a tax basis of $5,000. The tax liability applicable to only the capital gain (without consideration of any additional Medicare tax) is

Question

Quizplus · Accepted Answer

The capital gain is $25,000 - $5,000 = $20,000. The tax rate on capital gains for single filers in the 25% tax bracket is 15%. Therefore, the tax liability on the capital gain is $20,000 x 15% = $3,000.

Antonio Is Single and Has Taxable Income of $170,000 Without