Because Doug lost his job in 2018, his income was only $27,000. To make ends meet, he sold stock and realized capital gains of $5,000. Doug is single and files as an individual. The tax on his capital gains will be

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Doug's total income (ordinary income plus capital gains) is $32,000. For a single filer in 2018, the 0% tax rate on long-term capital gains applies to those with an income up to $38,600. Since Doug's income is below this threshold, his capital gains tax rate is 0%.

Because Doug Lost His Job in 2018, His Income Was