Mary is filing as single and has total taxable income of $40,000 which includes $10,000 of 25% gain and $3,000 of regular long term capital gain. The balance of $27,000 is ordinary taxable income. Using the simplified tax brackets, how much tax will she save by using the 'alternative tax' method (the capital gains rates)? Rate Single Tax Income Over 10% $-0- 15% $10,000 20% $50,000 25% $100,000 30% $200,000 35% $300,000 40% $500,000 But Not Over $10,000 $50,000 $100,000 $200,000 $300,000 $500,000 The Tax is 10% $1,000+ 15% $7,000+ 20% $17,000+ 25% $42,000+ 30% $72,000+ 35% $142,000+ 40% ...of the Amount Over $-0- $10,000 $50,000 $100,000 $200,000 $300,000 $500,000