Capital Gain Calculations:

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*House sale price of $650,000 – purchase price of $250,000 = $400,000
→ $400,000 divided by 2 = $200,000
→ $200,000 x marginal tax rate (we assume 30%) = $60,000

**Cottage sale price of $725,000 – purchase price of $200,000 = $525,000
→ $525,000 divided by 2 = $262,500
→ $262,500 x marginal tax rate (we assume 30%) = $78,750

 

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