Cason is filing as single and has 2014 taxable income of $36,000 which includes $34,000 of 0%/15%/20% net long- term capital gain. What is his tax on taxable income using the alternative tax method?

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Cason's taxable income includes $34,000 of long-term capital gain, which is taxed at 0% up to the 15% tax bracket limit. The remaining $2,000 of ordinary income is taxed at the 10% rate, resulting in $200 tax.

Cason Is Filing as Single and Has 2014 Taxable Income