Claudia owns business property that has increased in value by $20,000. If she sells now, three weeks before the end of the tax year, it will be subject to her current 35 percent marginal tax rate. If she waits until the beginning of the next year, she expects her marginal tax rate to decrease to 25 percent. How much more tax will she pay if she sells now rather than waiting the three weeks until next year?

Question

Quizplus · Accepted Answer

The Answer of Claudia owns business property that has increased in value by $20,000. If she sells now, three weeks before the end of the tax year, it will be subject to her current 35 percent marginal tax rate. If she waits until the beginning of the next year, she expects her marginal tax rate to decrease to 25 percent. How much more tax will she pay if she sells now rather than waiting the three weeks until next year?

Claudia Owns Business Property That Has Increased in Value by $20,000