1) In Q1, 2017 the value of the house price level is 240

1) In Q1, 2017 the value of the house price level is 240.62 

In Q1, 2022 the value of the house price level is 433.43 

2. Overall inflation rate for houses = 80.13%

3. The house is sold in 2022 for the price of $676,620 

4. Overall inflation rate = 16%

5. Value of 2022 home in 2017 dollars = $583,246.44

6. Nominal capital gains = $300,720

Real capital gains = $207,346.44 

Now you'll consider the implications of how the tax code is structured on your tax liability.Generally speaking, the capital gains from the sale of your house will fall under the capital gains rate, not the individual income tax rate. Additionally, the tax rate is applied to your nominalgains, not your real gains.Let's assume you fall somewhere in the middle of the general income distribution, where your marginal capital gains rate is 15% and your marginal individual income tax rate is 25%. (Note: I understand that this scenario abstractsaway from tax credits, allowances, and other nuancesof the tax code. This is an economics class. . . not an accounting class.)

Question:How much in taxes would you be responsible for under the following sce- narios:

1. Nominal valuetaxed as capital gains?

1. Real value taxed as capital gains?

1. Nominal value taxedas individual income?

1. Real value taxedas individual income?