Suppose the capital gains tax is 28 percent and you purchased a house ten years ago for $80,000. If you sold the house today you would get $140,000. Your tax liability would be

Question

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To calculate the tax liability, we need to first find the capital gain which is the difference between the sale price and the purchase price.
Capital Gain = Sale Price - Purchase Price
Capital Gain = $140,000 - $80,000 = $60,000
Now, we need to find the tax on this capital gain which is:
Tax on Capital Gain = Capital Gain x Capital Gains Tax Rate
Tax on Capital Gain = $60,000 x 0.28 = $16,800
Therefore, the tax liability would be $16,800.

Suppose the Capital Gains Tax Is 28 Percent and You