Sanjay is single and has taxable income of $13,000 without considering the sale of a capital asset in November of 2013 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 $15,000 - $5,000 = $10,000. The tax rate on capital gains for single filers is 0% for gains up to $40,000. Therefore, Sanjay's tax liability on the capital gain is $0.

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