Leonora sold her house for a lot more than she paid for it - NSC Consumer Studies - Question 1 - 2016 - Paper 1
Question 1
Leonora sold her house for a lot more than she paid for it. She is liable for ...
A. estate tax.
B. capital gains tax.
C. donation tax.
D. property tax.
Worked Solution & Example Answer:Leonora sold her house for a lot more than she paid for it - NSC Consumer Studies - Question 1 - 2016 - Paper 1
Step 1
The correct tax liability for Leonora
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Answer
Leonora is liable for capital gains tax (B), as this tax applies to the profit made from the sale of the house, which was sold for more than its purchase price.
