What is the tax rate at which Ben's gain on the painting will be taxed?

To determine the correct tax rate for Ben's gain on the painting, it's essential to understand the standard capital gains tax rates applicable to the sale of artwork and similar assets. Generally, if the painting was held for longer than one year, the gain would likely be considered a long-term capital gain, which is typically taxed at reduced rates compared to ordinary income.

The 15% capital gains rate applies to individuals in certain income brackets under the long-term capital gains provisions. Given that most artwork sales qualify as long-term capital gains, and if Ben's income level falls into the bracket eligible for this tax rate, then his gain from the painting would indeed be taxed at 15%.

Other rates, such as 25%, 28%, or 33%, might apply under different circumstances or for specific types of gains, but for the majority of taxpayers selling artwork held for over a year, 15% is the commonly applicable rate. Therefore, selecting 15% as the tax rate for Ben's gain on the painting aligns with the long-standing tax treatment of such assets.