I am married filing jointly and have LT Capital gains of $100K, but no other income. Do deductions ($25K in total) apply to my LT Capital gains income which would put me in the 15% tax bracket and therefore I would not have to pay any Federal Taxes? Deductions are:
1. Personal Exemptions = $16K (family of 4)
2. Itemized: Mortgage interest = $5K
3. Itemized: Property Tax = $4K
What is my AGI in this scenario?
Which deductions would apply and not-apply? What about other deductions in question against this scenario like Donations, Sales Tax and Health Care costs (including premiums) above 10% of AGI?
