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).
thank you for your professional answer!
- This reply was modified 2 years, 10 months ago by Kaye Thomas.