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03-20-2015, 11:23 AM
 Junior Member Join Date: Apr 2014 Posts: 3
Using Line 19 on Sch D doubled my taxes

A lawyer prepared my 2013 1040. He entered "2300" on Line 19 of Sch D, which requires use of Sch D Tax Computation Worksheet, which showed \$57000 due in taxes; but he used Qualified Gains & Cap Gains Worksheet and calculated \$29000 in taxes. Which amount do I owe? If the larger, how could the entry of \$2300 extra on Schedule D cost me an extra \$28000 in taxes?

It seems obvious to me that something is wrong here, and know I should ask the lawyer, but I expect he will be somewhat defensive if I imply that he did something wrong.

I noticed this whole snafu when preparing the data for this year's return, and I really don't want to do another return that may be way off in amount of tax due. Hope you can help me.

03-21-2015, 05:30 AM
 Moderator Join Date: Oct 2010 Posts: 5,237
A lawyer prepared my 2013 1040. He entered "2300" on Line 19 of Sch D, which requires use of Sch D Tax Computation Worksheet, which showed \$57000 due in taxes; but he used Qualified Gains & Cap Gains Worksheet and calculated \$29000 in taxes. Which amount do I owe?======>you need to pay 25% on \$2300 reported on line 19 of Sch D aslongas your marginal tax rate is 25% or higher; however, our tax bracket is 15% then you need to pay 10% on \$2300 as it is unrecaptured sec 1250 gain taxed as ordinary income.if \$2300 is reported on Sch D line 20 as Qualified Gains & Cap Gains Worksheet, then your tax is \$0 aslongas your marginal tax rate is 15% or lower, OR 15% if your tax rate is 25% or higher.

If the larger, how could the entry of \$2300 extra on Schedule D cost me an extra \$28000 in taxes?================>.I do not think so. The amount misreported is ONLY \$2300 right? How can the minimal amount can cost you an extra \$28K??

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