4) C and D lived in their home for 40 years. They sell their home in 2020 for $750,000. The original purchase price in 1980 plus improvements was $200,000.

A) How much income tax did they pay in years 1980-2019 on the homes increase in value?

B) What would their TAXABLE gain be in 2020?

C) Assuming this was a capital asset would the marginal tax rate on their taxable gain be more than, equal to or less than their marginal tax rate on their salaries?

(These questions are based off of the taxes in the U.S.)