<< I'm doing this part "Computation Using Maximum Capital Gains Rates" (confusing to say the least!) and cannot figure out where in lines 19-54 the maximum long term capital gains rate comes into the computation. Any experts in this area who could explain this computation? >>I find picking at my eye with a sharp stick far more amusing than trying to understand Part IV of Schedule D, but to each his own.The maximum rate is playing on lines 37 and 41. The break between the 15% and 28% ordinary income brackets is playing on line 29. The IRS forms person who had to translate the law into a form that would accurately calculate your tax is probably playing with stuffed animals in a rubber room.All kidding aside, the best thing to do is start at line 17 (not a typo--lots of people go astray by not fully absorbing the instructions at line 17) and do EXACTLY what it says. Being all in favor of expanded knowledge, I'll also suggest that it's easier to see how this is working if you look at the calculation worksheet on page 32 of the 1040 instructions. It's the maximum cap gains rate without all the exceptions that had to be included in Part IV of Schedule D.Phil MartiTax Preparer
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