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 on the homes increase in value between 1980 and 2019?

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?