Jillian, a single taxpayer, has a net long-term capital gain for the year and it is all made up of 25% long-term capital gain. She has positive taxable income for the year. Which of the following is not a possible tax rate that could be applied in taxing this gain as part of her taxable income?
A) 0%.
B) 15%.
C) 20%.
D) 25%.
E) a. and c.

Question

Quizplus · Accepted Answer

The 25% long-term capital gain rate applies to certain types of gains, such as unrecaptured Section 1250 gain, and is not subject to the 0% or 20% rates.

Jillian, a Single Taxpayer, Has a Net Long-Term Capital Gain