@glark1 wrote:
I think on re-reading, the tax is zero for the first 0 to 41k in capital gains, then 15% on higher amounts, maxing out at 20%.
Does that sound correct?
That's almost correct. The range of taxable income up to $41,675 applies to total taxable income, not just the capital gain. That includes the taxable portion of Social Security, the pension, and the taxable portion of the gain on the sale of the home. The pension and Social Security use up part or all of the 0% bracket, so most or all of the capital gain will be taxed at 15%. If your parent's AGI is over $200,000 he or she may also have to pay some Net Investment Income Tax in addition to the regular income tax.
