An investor in the 39.6% marginal tax bracket owns land that is a capital asset with a $50,000 basis and a holding period of 3 years. The investor wishes to sell the land such that he has $120,000 cash after taxes are paid. What does the sales price of the land need to be? Don't forget factoring in the net investment income tax on high income taxpayers.
Instead of land, assume that the item sold was the taxpayer's personal coin collection? What sales does the sales price need to be to provide $120,000 cash after taxes?