How to calculate capital gains When you sell a capital asset at a price higher than its "basis," you're generally required to report a capital gain on your federal income tax return. Basis means ...

You leave out the capital gain. You are still in the 22% tax bracket, and calculate your ordinary income tax as follows: 10% of the first $11,000 of income: $1,100 12% of the next $36,150 of ...