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Jon Andrews
Jon Andrews, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 3118
Experience:  I deal with all levels of tax planning and controversy - from the ordinary to the complex.
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inherited art capital gains rate

Customer Question

What is the minimum my mom would have to pay in capital gains tax if she sold a painting for $500,000 that she inherited in 1959, valued at $45,000.
Submitted: 10 years ago.
Category: Tax
Expert:  Jon Andrews replied 10 years ago.

The exact amount will depend on other factors such as her other income, deductions, filing status, etc. However, the basic calculation is sales price minus commissions and other costs, if any, minus basis equals gain and the gain on art (which is considered a collectible) is taxed at a rate of 28% or less.

Assuming that she had no selling costs, her gain would be $455,000 and the maximum tax would be $127,400.

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