Yup. OK... So, after further investigation, seeing that her Taxable income from Line 15 is less than $40K due to the standard deducible and , I can now see that there is room for $x amount of capital gains before exceeding the $40K of TAXABLE INCOME and incurring the 15%... which of course is only 15% on the amount exceeding $40K (say $2K) I do believe, and not triggering taxes on the whole $42,000.
Thanks George. I really didn't dig deep enough before asking the question but your responses helped me figure out what to look for and why it is what it is.
That should do it for this topic.
