Reply To: Taxation of Unrecaptured Section 1250 Gains

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#1634
Bollo
Participant

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.