Darla sold an antique clock in 2013 for $3,000.She had purchased the clock in 2009 for $2,000.If she is otherwise in the 35% marginal tax bracket,what is the maximum tax rate on the capital gain on the sale of the clock?

Question

Quizplus · Accepted Answer

The capital gain is $1,000 ($3,000 - $2,000). The maximum tax rate on long-term capital gains for taxpayers in the 35% marginal tax bracket is 15%. Therefore, the maximum tax on the capital gain is 15% of $1,000, which is $150.

Darla Sold an Antique Clock in 2013 for $3,000