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Coordination with recapture of net ordinary losses under section 1231

If any amount is treated as ordinary income under section 1231(c), such amount shall be allocated among the separate categories of net section 1231 gain (as defined in section 1231(c)(3)) in such manner as the Secretary may by forms or regulations prescribe.

in view

Whole section

▸rulespec code

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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

adjusted_net_capital_gain

Derived

source: 26 USC 1(h)(3), 1(h)(11)(A)

- name: adjusted_net_capital_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(3), 1(h)(11)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              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
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            max(0, net_capital_gain - qualified_dividend_income)
            - (
                unrecaptured_section_1250_gain
                + capital_gains_28_percent_rate_gain
            )
        )
        + qualified_dividend_income

capital_gains_excluded_from_taxable_income

Derived

source: 26 USC 1(h)(1)(A), 1(j)(5)(A)

- name: capital_gains_excluded_from_taxable_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A), 1(j)(5)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              a tax computed at the rates and in the same manner as if this subsection had not been
              enacted on the greater of— (i) taxable income reduced by the net capital gain; or (ii)
              the lesser of
        - path: versions[0].formula
          kind: import
          import:
            target: us:policies/irs/rev-proc-2025-32/capital-gains#capital_gains_zero_rate_threshold
            output: capital_gains_zero_rate_threshold
            hash: sha256:396e28611fcbfe9f466ce137e3f664565a02d01e284cb5ca22582fca69c79adb
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(0, taxable_income
        - max(
            taxable_income - net_capital_gain,
            min(
                min(max(taxable_income, 0), capital_gains_zero_rate_threshold),
                taxable_income - adjusted_net_capital_gain
            )
        ))

adjusted_net_capital_gain_limited

Derived

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

- name: adjusted_net_capital_gain_limited
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B)-(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: the adjusted net capital gain (or, if less, taxable income)
  versions:
    - effective_from: '2026-01-01'
      formula: min(adjusted_net_capital_gain, max(taxable_income, 0))

non_capital_gain_taxable_income

Derived

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

- name: non_capital_gain_taxable_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: taxable income reduced by the net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, taxable_income - capital_gains_excluded_from_taxable_income)

income_less_adjusted_net_capital_gain

Derived

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

- name: income_less_adjusted_net_capital_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: taxable income reduced by the adjusted net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, taxable_income - adjusted_net_capital_gain_limited)

capital_gains_in_zero_rate_bracket

Derived

source: 26 USC 1(h)(1)(B), 1(j)(5)(A)

- name: capital_gains_in_zero_rate_bracket
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B), 1(j)(5)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              0 percent of so much of the adjusted net capital gain (or, if less, taxable income) as
              does not exceed the excess (if any) of
        - path: versions[0].formula
          kind: import
          import:
            target: us:policies/irs/rev-proc-2025-32/capital-gains#capital_gains_zero_rate_threshold
            output: capital_gains_zero_rate_threshold
            hash: sha256:396e28611fcbfe9f466ce137e3f664565a02d01e284cb5ca22582fca69c79adb
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            min(max(taxable_income, 0), capital_gains_zero_rate_threshold)
            - income_less_adjusted_net_capital_gain
        )

capital_gains_in_fifteen_percent_bracket

Derived

source: 26 USC 1(h)(1)(C), 1(j)(5)(A)

- name: capital_gains_in_fifteen_percent_bracket
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(C), 1(j)(5)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              15 percent of the lesser of— (i) so much of the adjusted net capital gain (or, if
              less, taxable income) as exceeds the amount on which a tax is determined under
              subparagraph (B), or (ii) the excess of
        - path: versions[0].formula
          kind: import
          import:
            target: us:policies/irs/rev-proc-2025-32/capital-gains#capital_gains_fifteen_percent_threshold
            output: capital_gains_fifteen_percent_threshold
            hash: sha256:396e28611fcbfe9f466ce137e3f664565a02d01e284cb5ca22582fca69c79adb
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        min(
            max(
                0,
                adjusted_net_capital_gain_limited
                - capital_gains_in_zero_rate_bracket
            ),
            max(
                0,
                min(
                    max(taxable_income, 0),
                    capital_gains_fifteen_percent_threshold
                )
                - (
                    non_capital_gain_taxable_income
                    + capital_gains_in_zero_rate_bracket
                )
            )
        )

capital_gains_in_twenty_percent_bracket

Derived

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

- name: capital_gains_in_twenty_percent_bracket
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of
              the sum of the amounts on which tax is determined under subparagraphs (B) and (C)
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            adjusted_net_capital_gain_limited
            - capital_gains_in_zero_rate_bracket
            - capital_gains_in_fifteen_percent_bracket
        )

main_capital_gains_tax

Derived

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

- name: main_capital_gains_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B)-(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 0 percent ... 15 percent ... 20 percent of the adjusted net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        capital_gains_zero_rate * capital_gains_in_zero_rate_bracket
        + (
            capital_gains_fifteen_percent_rate
            * capital_gains_in_fifteen_percent_bracket
        )
        + (
            capital_gains_twenty_percent_rate
            * capital_gains_in_twenty_percent_bracket
        )

taxable_unrecaptured_section_1250_gain

Derived

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

- name: taxable_unrecaptured_section_1250_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(E)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              25 percent of the excess (if any) of— (i) the unrecaptured section 1250 gain (or, if
              less, the net capital gain (determined without regard to paragraph (11))), over (ii)
              the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            min(
                unrecaptured_section_1250_gain,
                max(0, net_capital_gain - qualified_dividend_income)
            )
            - max(
                0,
                non_capital_gain_taxable_income
                + net_capital_gain
                - taxable_income
            )
        )

unrecaptured_section_1250_gain_tax

Derived

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

- name: unrecaptured_section_1250_gain_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(E)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 25 percent of the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        unrecaptured_section_1250_gain_rate
        * taxable_unrecaptured_section_1250_gain

capital_gains_28_percent_rate_gain_tax

Derived

source: 26 USC 1(h)(1)(F), 1(h)(4)

- name: capital_gains_28_percent_rate_gain_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(F), 1(h)(4)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              28 percent of the amount of taxable income in excess of the sum of the amounts on
              which tax is determined under the preceding subparagraphs
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: the term “28-percent rate gain” means the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        capital_gains_28_percent_rate
        * min(
            capital_gains_28_percent_rate_gain,
            max(
                0,
                taxable_income
                - non_capital_gain_taxable_income
                - capital_gains_in_zero_rate_bracket
                - capital_gains_in_fifteen_percent_bracket
                - capital_gains_in_twenty_percent_bracket
                - taxable_unrecaptured_section_1250_gain
            )
        )

capital_gains_tax

Derived

source: 26 USC 1(h)(1)

- name: capital_gains_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: the tax imposed by this section for such taxable year shall not exceed the sum of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        main_capital_gains_tax
        + unrecaptured_section_1250_gain_tax
        + capital_gains_28_percent_rate_gain_tax

▸citations (3)

References

This rule cites 3 other rules.

26 USC § 1231 (c)inferredUS Federal › Statutes › Title 26 › § 1231 › (c)
26 USC § 1231inferredUS Federal › Statutes › Title 26 › § 1231
26 USC § 1231 (c)(3)inferredUS Federal › Statutes › Title 26 › § 1231 › (c)(3)

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us/statute/26/1/h/8 — Coordination with recapture of net ordinary losses under section 1231 · Axiom

Coordination with recapture of net ordinary losses under section 1231

Official source

in view

Whole section

▸rulespec code

Shown source

statutes/26/1/h.yaml

Displaying the canonical repository encoding.

This encoding covers the parent provision us/statute/26/1/h; no dedicated encoding exists for this exact provision yet.

View on GitHub

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

adjusted_net_capital_gain

Derived

source: 26 USC 1(h)(3), 1(h)(11)(A)

- name: adjusted_net_capital_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(3), 1(h)(11)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              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
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            max(0, net_capital_gain - qualified_dividend_income)
            - (
                unrecaptured_section_1250_gain
                + capital_gains_28_percent_rate_gain
            )
        )
        + qualified_dividend_income

capital_gains_excluded_from_taxable_income

Derived

source: 26 USC 1(h)(1)(A), 1(j)(5)(A)

- name: capital_gains_excluded_from_taxable_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A), 1(j)(5)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              a tax computed at the rates and in the same manner as if this subsection had not been
              enacted on the greater of— (i) taxable income reduced by the net capital gain; or (ii)
              the lesser of
        - path: versions[0].formula
          kind: import
          import:
            target: us:policies/irs/rev-proc-2025-32/capital-gains#capital_gains_zero_rate_threshold
            output: capital_gains_zero_rate_threshold
            hash: sha256:396e28611fcbfe9f466ce137e3f664565a02d01e284cb5ca22582fca69c79adb
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(0, taxable_income
        - max(
            taxable_income - net_capital_gain,
            min(
                min(max(taxable_income, 0), capital_gains_zero_rate_threshold),
                taxable_income - adjusted_net_capital_gain
            )
        ))

adjusted_net_capital_gain_limited

Derived

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

- name: adjusted_net_capital_gain_limited
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B)-(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: the adjusted net capital gain (or, if less, taxable income)
  versions:
    - effective_from: '2026-01-01'
      formula: min(adjusted_net_capital_gain, max(taxable_income, 0))

non_capital_gain_taxable_income

Derived

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

- name: non_capital_gain_taxable_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: taxable income reduced by the net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, taxable_income - capital_gains_excluded_from_taxable_income)

income_less_adjusted_net_capital_gain

Derived

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

- name: income_less_adjusted_net_capital_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: taxable income reduced by the adjusted net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, taxable_income - adjusted_net_capital_gain_limited)

capital_gains_in_zero_rate_bracket

Derived

source: 26 USC 1(h)(1)(B), 1(j)(5)(A)

- name: capital_gains_in_zero_rate_bracket
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B), 1(j)(5)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              0 percent of so much of the adjusted net capital gain (or, if less, taxable income) as
              does not exceed the excess (if any) of
        - path: versions[0].formula
          kind: import
          import:
            target: us:policies/irs/rev-proc-2025-32/capital-gains#capital_gains_zero_rate_threshold
            output: capital_gains_zero_rate_threshold
            hash: sha256:396e28611fcbfe9f466ce137e3f664565a02d01e284cb5ca22582fca69c79adb
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            min(max(taxable_income, 0), capital_gains_zero_rate_threshold)
            - income_less_adjusted_net_capital_gain
        )

capital_gains_in_fifteen_percent_bracket

Derived

source: 26 USC 1(h)(1)(C), 1(j)(5)(A)

- name: capital_gains_in_fifteen_percent_bracket
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(C), 1(j)(5)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              15 percent of the lesser of— (i) so much of the adjusted net capital gain (or, if
              less, taxable income) as exceeds the amount on which a tax is determined under
              subparagraph (B), or (ii) the excess of
        - path: versions[0].formula
          kind: import
          import:
            target: us:policies/irs/rev-proc-2025-32/capital-gains#capital_gains_fifteen_percent_threshold
            output: capital_gains_fifteen_percent_threshold
            hash: sha256:396e28611fcbfe9f466ce137e3f664565a02d01e284cb5ca22582fca69c79adb
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        min(
            max(
                0,
                adjusted_net_capital_gain_limited
                - capital_gains_in_zero_rate_bracket
            ),
            max(
                0,
                min(
                    max(taxable_income, 0),
                    capital_gains_fifteen_percent_threshold
                )
                - (
                    non_capital_gain_taxable_income
                    + capital_gains_in_zero_rate_bracket
                )
            )
        )

capital_gains_in_twenty_percent_bracket

Derived

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

- name: capital_gains_in_twenty_percent_bracket
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of
              the sum of the amounts on which tax is determined under subparagraphs (B) and (C)
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            adjusted_net_capital_gain_limited
            - capital_gains_in_zero_rate_bracket
            - capital_gains_in_fifteen_percent_bracket
        )

main_capital_gains_tax

Derived

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

- name: main_capital_gains_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(B)-(D)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 0 percent ... 15 percent ... 20 percent of the adjusted net capital gain
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        capital_gains_zero_rate * capital_gains_in_zero_rate_bracket
        + (
            capital_gains_fifteen_percent_rate
            * capital_gains_in_fifteen_percent_bracket
        )
        + (
            capital_gains_twenty_percent_rate
            * capital_gains_in_twenty_percent_bracket
        )

taxable_unrecaptured_section_1250_gain

Derived

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

- name: taxable_unrecaptured_section_1250_gain
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(E)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              25 percent of the excess (if any) of— (i) the unrecaptured section 1250 gain (or, if
              less, the net capital gain (determined without regard to paragraph (11))), over (ii)
              the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            min(
                unrecaptured_section_1250_gain,
                max(0, net_capital_gain - qualified_dividend_income)
            )
            - max(
                0,
                non_capital_gain_taxable_income
                + net_capital_gain
                - taxable_income
            )
        )

unrecaptured_section_1250_gain_tax

Derived

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

- name: unrecaptured_section_1250_gain_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(E)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: 25 percent of the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        unrecaptured_section_1250_gain_rate
        * taxable_unrecaptured_section_1250_gain

capital_gains_28_percent_rate_gain_tax

Derived

source: 26 USC 1(h)(1)(F), 1(h)(4)

- name: capital_gains_28_percent_rate_gain_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(F), 1(h)(4)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: >-
              28 percent of the amount of taxable income in excess of the sum of the amounts on
              which tax is determined under the preceding subparagraphs
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: the term “28-percent rate gain” means the excess (if any) of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        capital_gains_28_percent_rate
        * min(
            capital_gains_28_percent_rate_gain,
            max(
                0,
                taxable_income
                - non_capital_gain_taxable_income
                - capital_gains_in_zero_rate_bracket
                - capital_gains_in_fifteen_percent_bracket
                - capital_gains_in_twenty_percent_bracket
                - taxable_unrecaptured_section_1250_gain
            )
        )

capital_gains_tax

Derived

source: 26 USC 1(h)(1)

- name: capital_gains_tax
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/1
            excerpt: the tax imposed by this section for such taxable year shall not exceed the sum of
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        main_capital_gains_tax
        + unrecaptured_section_1250_gain_tax
        + capital_gains_28_percent_rate_gain_tax

▸citations (3)

References

This rule cites 3 other rules.

26 USC § 1231 (c)inferredUS Federal › Statutes › Title 26 › § 1231 › (c)
26 USC § 1231inferredUS Federal › Statutes › Title 26 › § 1231
26 USC § 1231 (c)(3)inferredUS Federal › Statutes › Title 26 › § 1231 › (c)(3)