If buying a condo for $100,000 with a $10,000 down payment, with an increase market value of 5% and 28% marginal tax rate. What would and wouldn't be taxable here? I have gotten mixed answers from friends. Also, how do I figure the after-tax yield on this? Yes, this is one of my questions on my homework, and I appriciate any information. thanks
2007-11-21 16:21:11 · 2 answers · asked by Tony L O 1 in Business & Finance ➔ Personal Finance
are you trying to say that the taxable income if sold would be (100k time 5%) and than take the 5k time 28% tax rate for a answer of $1400!!!
2007-11-25 06:54:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Nothing is taxable unless you sell the condo at a net profit. If a net profit occurs, it would be taxed at the capital gains rate, NOT the marginal income tax rate! This whole question seems to be 'confused'.
2007-11-22 00:38:39 · answer #2 · answered by Doctor J 7 · 0⤊ 0⤋