Long Term Capital Gains Treatment?

[zeros]

I was under the understanding that if your income was at some point, that the capital gains would be zero? I ran a scenario with no other income but the $150K capital gains (LT). It turned out to be some taxable income and taxes. I'm thinking I must have misunderstood the meaning of "0" capital gain rate. Can someone enlighten me?

[JoshinNC]

A taxpayer in the 10 or 15% tax bracket

has a LTCG rate of 0%. Your hypothetical with $150k in cap gains is not in one of those brackets.

[TaxGuyBill]

If a taxpayer is in the 15% tax bracket or lower, INCLUDING the capital gains, it is taxed at 0%.

The key is that the capital gains is added to "taxable income" to determine a hypothetical 'regular' tax bracket, then the 0%/15%/20% capital gain rate is based on that hypothetical 'regular' bracket.

[kathyc2]

The portion of the LTCG that is in the 15% or lower marginal rate is taxed at 0%. If 150K LTCG is only income for MFJ taking std deduction, then 95,500 (12,600 std + 8,000 exemptions +74,900 end of 15% marginal rate) would be taxed at 0%. The balance of 54,500 would be taxed at the 15% LTCG rate since the marginal rate for this portion of income would be 25%.

[Rapid Robert]

I ran a scenario with no other income but the $150K capital gains (LT). It turned out to be some taxable income and taxes. .

Doesn't your software produce a QDCGTW as shown in IRS instructions? The amount subject to zero tax rate is clearly labeled.