tax on capital gains

Client has 60k capital gains.

a. does it effect the taxes you pay on earned income?

or

b. do you just pay on capital gains and then that amount is added to your taxes owed on the 1040?

c. client held acct 5yrs and is 88 years old. Her capital gains tax would be 15%, correct?

Thank you,
Douglas



Lt cap gain rates are 0 if client is in the 10 or 15% brackets, and 15% if client is in a higher bracket up to the top bracket of 39.6, then 20% in the 39.6 bracket. Cap gains can increase the amount of SS subject to taxation even if the cap gain rate is 0. Taxes on ordinary income would not change.



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