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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123538  
Subject: Re: schedule D Date: 3/22/2008 10:04 PM
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I used turbo-tax to complete my tax return.

OK. That should handle most common situations just fine.

I have both short term and long term gains from the the sale of stock.


On my schedule D, it lists the short term gain on line 7 and long term gain on line 15. Line 16 is the sum of both, which is then entered on line 13 of the 1040.

So far, so good.

Isn't there a different tax rate for short term and long term gains?


Based on the above, both gains are evenly added to my total income


(and taxed at the same rate).


When you get to page two of your 1040 and calculate the tax, you'll use a special tax calculation because of the long-term capital gains. There's a worksheet in the instructions to do the tax calculation. I'd hazard a guess that TT will print out that worksheet if you ask it to. That is how you will get the benefit of the lower tax rate on LTCG income.

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