Level 15
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Investors & landlords

Yes and no.

 

He has to report the capital gain, if it was more than $10,300* (a single person's filing threshold).  If the gain was less than $47,750, and is a long term gain, he will not pay any tax as long term capital gains (LTCG) are taxed at 0% for people in the lower tax brackets.

 

* The numbers  are different for people  who can be claimed as a dependent by someone else.  The filing threshold is $1050 and tax will be due on a LTGC greater than $38,500.

 

Those numbers assume you have no other reportable income.