At what rate will Telicia's gain from selling a painting be taxed?

The correct answer is that Telicia's gain from selling a painting will be taxed at a rate of 28%. This rate applies specifically to collectibles, including art, antiques, stamps, and coins. Under the tax code, the gain from the sale of collectibles is subject to a maximum capital gains tax rate of 28%, which is higher than the lower rates applied to conventional long-term capital gains.

Collectibles are treated differently than other long-term capital assets, which may be taxed at rates of 0%, 15%, or 20% depending on the individual's taxable income. This distinction is important for understanding the tax implications of investing in art or other types of collectibles. If Telicia realizes a gain from selling her painting, she would be subject to the 28% tax rate on that gain, making it essential for her to factor this into her financial planning.