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(II) taxable income reduced by the
adjusted net capital gain, plus
(B) 25 percent of the excess (if any) of--
(i) the unrecaptured section 1250 gain (or,
if less, the net capital gain), over
(ii) the excess (if any) of--
(I) the sum of the amount on which tax
is determined under subparagraph (A) plus the
net capital gain, over
(II) taxable income, plus
(C) 28 percent of the amount of taxable income in
excess of the sum of--
(i) the adjusted net capital gain, plus
(ii) the sum of the amounts on which tax is
determined under subparagraphs (A) and (B), plus
(D) 10 percent of so much of the taxpayer’s
adjusted net capital gain (or, if less, taxable income)
as does not exceed the excess (if any) of--
(i) the amount of taxable income which would
(without regard to this paragraph) be taxed at a
rate below 28 percent, over
(ii) the taxable income reduced by the
adjusted net capital gain, plus
(E) 20 percent of the taxpayer’s adjusted net
capital gain (or, if less, taxable income) in excess of
the amount on which a tax is determined under
subparagraph (D).
Accordingly, petitioners’ claim that their entire gain from
the sale of the property is taxed at a maximum rate of 20 percent
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Last modified: May 25, 2011