Investors & landlords

Can I ask another example? I feel like I am being taxed on a long term capital gain when I should not.

 

Example:  AGI is $45,430 and I am a single filer.  My long term capital gain is $4,385 for a total of $49,815 less standard deduction of $12,400 equals $37,415 which puts me under the $40,000 in taxable income.  Yet in the Premier Edition I am being taxed on 100% of the $4385 in LT Capital Gain.  I looked at the capital gain worksheet in Forms and the gain is classified as "L".  What am I missing?