Question

Akira, a single taxpayer, purchased a famous painting for $96,000. several years later, she sold it for $126,000. Akira's marginal tax rate is 35%. akira's gain on the sale of the painting will be taxed at a rate of

Answer 1

1. Answer: When assessee Selley any work of art of painting during the Year, at is geen if this is sold within the same year or after 1 year. If the gale is made within the same year, the assessee needs to pay Income tax on gain made on such sale. If the sale is made after 1 year, assessee needs to pay capital gain tax on gain made on such sale @ that 28% irrespective of assessee's marginal tax rate : Akira Sold the work of art after f year so capital gain tax will payable @28%