What is the tax rate on Telicia's gain from selling a painting purchased for $69,000 and sold for $99,000?

To determine the correct tax rate on Telicia's gain from selling the painting, it's important to understand how gains from the sale of assets are taxed, particularly in the context of capital gains.

Telicia purchased the painting for $69,000 and sold it for $99,000. The gain from this transaction can be calculated as the selling price minus the purchase price, which results in a gain of $30,000 ($99,000 - $69,000).

The nature of this gain is crucial in determining the applicable tax rate. Because Telicia sold a painting, the gain is classified as a long-term capital gain if she held the painting for more than one year before selling it. Long-term capital gains are generally taxed at preferential rates compared to ordinary income, which makes it more favorable for taxpayers.

The maximum long-term capital gains tax rate as of the date in question is typically 20% for assets held longer than a year, along with lower rates for assets in certain income thresholds—15% for those falling into a moderate income bracket, and 0% for those with lower incomes.

However, the mention of a 28% tax rate can apply in specific circumstances, such as collectibles or certain types of investments. Since art