I get a phone call, client is clearly upset and has been reviewing their tax return;
Client: I thought you told me that I wouldn’t be taxed on my capital gains this year.
Me: That’s right; to the extent you are in the 15% bracket you have a 0% capital gains rate.
Client: So why am I getting taxed at 28% on my capital gains?
Me: Your not, you’re in the 15% bracket.
Client: Right here on my tax return it says 28% and it’s been that way the whole time I’ve been getting these payments.
Me: Where do you see 28% on your tax return?
Client: Right there on line 19 on Form 6252.
Client: I thought you told me that I wouldn’t be taxed on my capital gains this year.
Me: That’s right; to the extent you are in the 15% bracket you have a 0% capital gains rate.
Client: So why am I getting taxed at 28% on my capital gains?
Me: Your not, you’re in the 15% bracket.
Client: Right here on my tax return it says 28% and it’s been that way the whole time I’ve been getting these payments.
Me: Where do you see 28% on your tax return?
Client: Right there on line 19 on Form 6252.
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