Shayna has owned her principal residence for more than a year thot used for business). What is the lowest possible tax rate she could be taxed on a gain on sale of the home? 0\% = this is the lowest ordinary income tax rate \( \mathbf{0 \%} \) - this is the lowest long-term capital gains tax rate Whatever rate is her ordinary marginal income tax rate

To determine the lowest possible tax rate Shayna could be taxed on a gain from the sale of her principal residence, we need to consider the following: 1. **Ownership Duration**: Shayna has owned her principal residence for more than a year, which qualifies her for long-term capital gains treatment. 2. **Exclusion of Gain**: Under current tax law, if Shayna meets certain conditions (such as using the home as her principal residence for at least two of the last five years), she may exclude up to $250,000 of gain from the sale of her home if she is single, or up to $500,000 if she is married filing jointly. 3. **Tax Rates**: - The lowest ordinary income tax rate is \(0\%\). - The lowest long-term capital gains tax rate is also \(0\%\) for individuals in the lower income brackets. Given these points, if Shayna's gain on the sale of her home is less than the exclusion amount and she qualifies for the exclusion, she could potentially pay \(0\%\) on the gain. ### Conclusion: The lowest possible tax rate Shayna could be taxed on a gain from the sale of her home is \( \mathbf{0\%} \) if she qualifies for the exclusion.