Kelly, a single individual, has $15,000 of taxable income before a long-term capital gain of $5,000 on the sale of some stock owned for two years that she sold in 2018.What is the tax rate applied to this gain?

Question

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For the tax year 2018, individuals with taxable income (including their long-term capital gains) that falls within the 10% or 12% ordinary income tax brackets are subject to a 0% tax rate on those gains. Kelly's total taxable income, including her long-term capital gain, would be $20,000, which would place her in the 12% ordinary income tax bracket for a single filer in 2018. Therefore, her long-term capital gain would be taxed at 0%.

Kelly, a Single Individual, Has $15,000 of Taxable Income Before