Comment by surfman

I still need help understanding this new Tax rule. I might understand capital assets better if you could answer these two questions.

We pay software developers to create a new product. We spend $1m on their wages, then sell that software product for $1.1m. How much federal tax would I owe based on this new tax rule?

We buy a machine for $1m and then sell it for 1.1m. How much federal taxes would I owe?