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Technically, your taxable income would be $70k. Of that, $50k is taxed at ordinary rates (some at 10%, some at 15%), and $20k is taxed at 0%.

The main reason to mention the distinction is that the capital gain is still income. So if you have anything that is income sensitive (such as medical deductions which have to be greater than 10% (or 7.5% if you're over 65) of your income, the LT capital gain will affect that.

Perfect. Thanks.

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