@irongirltx1 wrote:
...Then it calculated the tax at $7,200! That's a 25% tax rate on a long term capital gain.
If you are seeing a 25% tax rate, that would be unrecaptured Section 1250 gain (depreciation recapture) which is taxed at ordinary income tax rates up to a maximum of 25%.
Further, the penalty for underpayment of estimated tax is not limited to a particular class of income, such as only earned income; it applies across the board.
If you want to throw out some numbers (even if they are rough approximations or hypothetical), I can run them through a test return in order to check whether or not there is some sort of program (or entry) error.
