This is the way I understand it. If the capital gains added to the other income keeps her in the 15% bracket none of the capital gains are taxed.
If the capital gains plus other income puts her over the 15% tax bracket. then the portion between her other income and the point where she goes into next bracket is not taxed, however, the amount that falls into the next tax bracket is taxed at 15%.
In other words her tax income is determined by both the other income and the capital gains even though capital gains might be taxed at a different rate.
If the capital gains plus other income puts her over the 15% tax bracket. then the portion between her other income and the point where she goes into next bracket is not taxed, however, the amount that falls into the next tax bracket is taxed at 15%.
In other words her tax income is determined by both the other income and the capital gains even though capital gains might be taxed at a different rate.
Comment