Real Estate Math

An Arizona property was purchased for $280,000 and sold for $350,000. Capital gains (simplified) are $70,000. If the federal capital gains tax rate is 15%, how much tax is owed?

A$7,000
B$10,500✓ Correct
C$14,000
D$21,000

Explanation

Capital gains tax = $70,000 × 15% = $10,500. To solve this, multiply the relevant values: $280,000 and $350,000 at 15%..

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