In 2005 you purchased a stamp collection for $75 and you sold it this year for $150. Legally, you don't need to pay any taxes on this transaction.

Question

Quizplus · Accepted Answer

The profit made from the sale of the stamp collection is considered a capital gain and is subject to capital gains tax. The exact amount of tax owed will depend on various factors such as the holding period and the taxpayer's tax bracket.

In 2005 You Purchased a Stamp Collection for $75 and You