If Jahred sold an investment property for $400,000 that he bought for $275,000 and made $45,000 in improvements, what was his capital gain after broker fees?

To determine Jahred's capital gain on the sale of his investment property, it's important to consider both the purchase price and the costs associated with selling the property.

Jahred bought the property for $275,000 and added improvements totaling $45,000. Therefore, the adjusted basis of the property, which is the original purchase price plus the cost of improvements, equals $275,000 + $45,000 = $320,000.

When Jahred sold the property for $400,000, to find the capital gain, we need to subtract the adjusted basis from the sale price. This gives us:

$400,000 (sale price) - $320,000 (adjusted basis) = $80,000.

This calculation represents the gross capital gain before considering any broker fees. If the broker fees were accounted for and specified in the question, those would be subtracted from the gross capital gain. However, since the question does not provide any broker fees, we conclude that the capital gain remains at $80,000.

The reasoning concludes that since we are operating under the assumption that there are no additional costs provided in the scenario, the final capital gain after the sale transaction is indeed $80,000.