October 30, 2018 at 12:33 pm #1398
This is a special rate for long-term capital gain, not a special rate for ordinary income. We know this two ways:
- The name says this gain is “unrecaptured,” meaning we haven’t applied ordinary rates to the gain.
- We’re allowed to use capital losses (including “normal” long-term capital losses) to offset this gain without regard to the $3,000 capital loss limitation (see Schedule D).
- This reply was modified 2 years, 11 months ago by Kaye Thomas.