Luly will report $800,000 of taxable income in 2019.Included in the taxable income is one sale of an investment asset.Luly sold a building she had owned for three years,resulting in a $100,000 unrecaptured Sec.1250 gain.Her tax on the gain (without consideration of the additional Medicare tax)will be

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Luly's unrecaptured Sec. 1250 gain is taxed at a maximum rate of 25%. Therefore, her tax on the gain would be $100,000 x 25% = $25,000.

Luly Will Report $800,000 of Taxable Income in 2019