Mary buys $32,000 worth of gold, and sells it a year later for $41,000. If she is required to pay 23% capital gains tax on her profit, how much tax will she pay?
The profit is $41,000 - $32,000. Multiply this by 23%.
.2070%
To calculate the amount of capital gains tax that Mary will pay, we first need to determine her profit from selling the gold.
Her profit can be calculated by subtracting the initial cost of the gold from the selling price:
Profit = Selling Price - Cost Price
Profit = $41,000 - $32,000
Profit = $9,000
Now, we need to calculate the capital gains tax on her profit.
To find the tax amount, we multiply her profit by the capital gains tax rate, which is 23%:
Tax amount = Profit * Tax rate
Tax amount = $9,000 * 0.23
Tax amount = $2,070
Therefore, Mary will pay a capital gains tax of $2,070.