For the current year, David has salary income of $80,000 and the following property transactions:
$\begin{array}{llr}
\text {Stock investment sales- } &\
\text { Long-term capital gain } &\$9,000\
\text { Shoit-term capital loss} &(12,000)\
\text { Loss on sale of camper (purchased 4 years ago and used for family vacations) } &(2,000)\
\end{array}$

What is David's AGI for the current year?
A) $76,000.
B) $77,000.
C) $78,000.
D) $89,000.
E) None of the above.

Question

For the current year, David has salary income of $80,000 and the following property transactions:
$\begin{array}{llr}
  \text {Stock investment sales-  } &\
 \text { Long-term capital gain } &\$9,000\
 \text {  Shoit-term capital loss} &(12,000)\
 \text { Loss on sale of camper (purchased 4 years ago and used for family vacations) } &(2,000)\
\end{array}$
 
What is David's AGI for the current year?
A) $76,000.
B) $77,000.
C) $78,000.
D) $89,000.
E) None of the above.

Quizplus · Accepted Answer

David's AGI for the current year can be calculated as follows:
Salary income = $80,000
Short-term capital gain = $1,000
Long-term capital loss = ($4,000)
Net capital loss deduction = $3,000
Adjusted Gross Income (AGI) = $80,000 + $1,000 - $4,000 - $3,000 = $74,000
Therefore, the answer is B, $77,000.

For the Current Year, David Has Salary Income of $80,000