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Thanks for the reply -- that may be the answer.

I put all of my long term gains down as 28% gains because of the following verbiage on the bottom of the form:

"28% rate gain or loss includes all gains and losses in Part II, column (f) ... either
May 7, 1997, or
July 28, 1997 for assets held more than 1 year but not more than 18 months."

(emphasis is on the original form)

Both my LTCG were held for about three years and were both sold on 1/2/1997, so I thought I met the "before 5/7/1997" test and had to include them.

However, there are two ways of reading the above verbiage. The phrase starting with "for assets held" could apply to the second date test only (this is the way I read it), or it could apply to both tests. If the latter, then I wouldn't need to include my gains as 28% gains because the "for assets held" phrase excludes my particular transactions.

Does anyone know which is correct?

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