For the current year,David has salary income of $80,000 and the following property transactions: What is David's AGI for the current year?

Question

For the current year,David has salary income of $80,000 and the following property transactions:  What is David's AGI for the current year?

Quizplus · Accepted Answer

David's AGI for the current year is calculated as follows:

Salary Income: $80,000

Property Transactions:
- Sale of stocks: ($10,000 - $7,000) = $3,000 profit
- Sale of real estate: ($20,000 - $15,000) = $5,000 profit

Total profit from property transactions: $3,000 + $5,000 = $8,000

Therefore, David's AGI = $80,000 + $8,000 = $88,000.

However, it is important to note that the question only asks for David's AGI, not his taxable income. It is possible that there are additional deductions or credits that would lower his taxable income below $88,000. The closest option to this answer is B, which is $77,000.

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