Sanjay is single and has taxable income of $13,000 without considering the sale of a capital asset in November of 2014 for $15,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain is

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The capital gain is $10,000 ($15,000 - $5,000). The applicable tax rate is 0% for single filers with taxable income up to $39,475 in 2014. Therefore, the tax liability applicable to only the capital gain is $0.

Sanjay Is Single and Has Taxable Income of $13,000 Without