Hi,

How do I figure what portion of a long-term capital gain is taxed 0% and 15% in the following problem? In the answer book I have it says that $4000 out of $9000 is taxed at 0% for 9A.

Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,000. Meg works part-time at the same university. She earns $21,000 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks).

1. 9A. WhatistheComers'taxliabilityfor2016iftheyreportthefollowingcapitalgainsandlossesfortheyear?

   Short-termcapitalgains	$9,000
   Short-termcapitallosses	(2,000)
   Long-termcapitalgains	15,000
   Long-termcapitallosses	(6,000)

2. 9B. What is the Comers' tax liability for 2016 if they report the following capital gains and losses for the year?

   Short-term capital gains	$ 1,500
   Short-term capital losses	0
   Long-term capital gains	13,000
   Long-term capital losses	(10,000)