Question
0% Capital gains rate
I have a client with less than $44,000 taxable income so they should be eligible for the 0% long term capital gains rate. How do I make sure this is applied in Pro connect? I have never had this for another client. How is this supposed to be shown on the return? The taxpayer has approximately $15,000 in long term capital gains. The 15,000 is right now coming up line 7 of the Form 1040. No Schedule D. Should I press non-taxable for federal? But then the long-term capital gains show up nowhere on the return. I could force the Schedule D. I do not think the LT capital gains should show up on line 7 because then it would limit the benefit of the standard deduction. Any help?
