Question

Ben bought a local artist's painting for $2100. Several years later. Ben sold it for $2700. The year Ben sold the painting. he was in the 12% tax bracket. What % will Ben's gain be taxed at?

Answer 1

28%

Step-by-step explanation:

Provided information

Purchase value of local artist's painting = $2,100

After several years, the sale value would be $2,700

Given tax bracket = 12%

Since there is a purchase and sale transactions of local artist's painting which reflects the capital gain that would be a long term capital gain

So, the tax rate should be 28%, not 12% and at this rate the gain is to be taxed.