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Adjusted net capital gain

For purposes of this subsection, the term “adjusted net capital gain” means the sum of—

(A) net capital gain (determined without regard to paragraph (11)) reduced (but not below zero) by the sum of— (i) unrecaptured section 1250 gain, and (ii) 28-percent rate gain, plus

(B) qualified dividend income (as defined in paragraph (11)).

in view

Whole section

▸rulespec code

Shown source

statutes/26/1/h.yaml

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Rules

capital_gains_zero_rate

Parameter

source: 26 USC 1(h)(1)(B)

- name: capital_gains_zero_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 1(h)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 0 percent of so much of the adjusted net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: '0'

capital_gains_fifteen_percent_rate

Parameter

source: 26 USC 1(h)(1)(C)

- name: capital_gains_fifteen_percent_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 1(h)(1)(C)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 15 percent of the lesser of
  versions:
    - effective_from: '2026-01-01'
      formula: '0.15'

capital_gains_twenty_percent_rate

Parameter

source: 26 USC 1(h)(1)(D)

- name: capital_gains_twenty_percent_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 1(h)(1)(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 20 percent of the adjusted net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: '0.20'

unrecaptured_section_1250_gain_rate

Parameter

source: 26 USC 1(h)(1)(E)

- name: unrecaptured_section_1250_gain_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 1(h)(1)(E)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 25 percent of the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: '0.25'

capital_gains_28_percent_rate

Parameter

source: 26 USC 1(h)(1)(F)

- name: capital_gains_28_percent_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 1(h)(1)(F)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 28 percent of the amount of taxable income in excess
  versions:
    - effective_from: '2026-01-01'
      formula: '0.28'

net_capital_gain

Derived

source: 26 USC 1(h)(2), 1(h)(11)(A)

- name: net_capital_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(2), 1(h)(11)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              the net capital gain for any taxable year shall be reduced (but not below zero) by the
              amount which the taxpayer takes into account as investment income under section
              163(d)(4)(B)(iii)
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              the term “net capital gain” means net capital gain (determined without regard to this
              paragraph) increased by qualified dividend income
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            max(0, long_term_capital_gains)
            - max(0, -short_term_capital_gains)
            - net_capital_gain_taken_into_account_as_investment_income_under_section_163_d_4_B_iii
        )
        + qualified_dividend_income