Maggie bought a house in 2004 for $85,000. She fixed it up with paint and wallpaper but in 2006 she did a major renovation which cost her $55,000. The fair market value of the house is $330,000 in December 2021. In the same year when she bought the house, she also bought a cottage for $145,000. She winterized it immediately by spending $15,000. Maggie also spent other $15,000 on the cottage in 2005 on the new roof, new siding, new windows and new doors. Real Estate prices increased by 4% over time for the cottage. She sold both the properties in December 2021 and paid commission of 5% to the Agent for this.

Question: Calculate taxable capital gain on the sale of the House in 2021?

Calculate taxable capital gain on the sale of the Cottage in 2021?

Calculate tax liability in the year of sale on the House and the Cottage assuming she is in a 30% Marginal Tax Rate.