What happens here is there was a sale of depreciable property. All of the sale is reported on other lines; capital gain, Section 1231, etc.
Part of what was sold was what is known as Section 1250 property, real property. The law says that this property has a capital gain tax rate of 25% and that is why is it showing up on the capital gain (Sch D) worksheet. This will apply the correct rate for that portion of the property sold.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
