Question $4(10$ points$)$

Jill purchased a house for $$800,000$ and sold it for $$1,069,400$ after $5$ years, without making any improvements. At the time of sale, she was single and incurred various fees and commissions totaling $8\%$ of the selling price. Her average capital gains tax rate was $17\%,$ and her marginal capital gains tax rate was $20\%.$

Due to the home sale tax exemption, the amount of capital gains tax she saves equals $ $q,$

Your Answer:

$$

Answer

Question $5(10$ points$)$

Last year, Tony paid $$1,100$ in mortgage interest, $$3,100$ in mortgage principal, and $$2,000$ in property taxes. Based on his taxable income, his average income tax rate is $19\mathrm{.}5\%,$ and his marginal income tax rate is $24\%.$

If Tony itemizes his deductions, he can save $ $q,$ because of his real estate related expenses listed above.

Your Answer:

$$

Answer