Mike Polacek
Level 3
Tuesday
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They are well below the 28% tax bracket. My reading of the way the gain is taxed was it is taxed at 28%. I look at the schedule D tax summary page and see the gains included at the normal income rates but the gain is small enough it never gets out of the 24% bracket.
For comparison I upped the gain by $500k and saw the change that it went through the brackets until the highest portion was taxed at only 28%. That led to my assumption that they are taxed at ordinary rates up to a max of 28% but that wasn't the way I was reading the code.