"Allocation of long-term gain" section - what is: 28% rate gain?

hi - I'm working on a trust tax return using the "business" and trust version of turbotax.

In the section "Allocation of long-term gain", there is a box for 2019 "28% rate gain".

I don't know If that's a question or what exactly they are asking for in that box. I've already stated the long-term capital gain amount given to beneficiaries. Is TT asking if some portion of the long-term capital gain will be taxed at 28%? I don't see any help available (am I missing something).

Thank you!

1585

1 Best answer

Level 15

Feb 29, 2020 12:24:19 PM

@smishke wrote:
Is TT asking if some portion of the long-term capital gain will be taxed at 28%?

Yes, and it probably does not apply in your case if are not aware of the 28% rate (which is applicable to collectibles and taxable gain from section 1202 stock).

See https://www.irs.gov/taxtopics/tc409