Yes, I’m sure. My marginal federal tax rate is 37%, and after I added the Section 1231 gain, I noticed the amount I owe to the IRS was increased accordingly. I had expected the increase to be at the 20% long-term capital gains rate instead. I’m trying to understand how TurboTax determines whether this is treated as a long-term gain. I was expecting a question like, “Was any of this gain from the sale of business or rental property held for more than one year?” but I didn’t see anything like that. There also doesn’t seem to be a place for me to adjust or clarify this manually.
