In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capital gains, short-term capital losses of $6,000, and long-term capital gains of $4,000. What is Marc's adjusted gross income (AGI) for the current year?
A)$32,000
B)$39,000
C)$36,000
D)$34,000

Question

Quizplus · Accepted Answer

To calculate Marc's AGI, we start with his ordinary income of $35,000 and add his long-term capital gain of $4,000. This gives us a total income of $39,000.

Next, we need to determine Marc's net capital gain or loss. We do this by subtracting his short-term capital losses of $6,000 from his short-term capital gains of $3,000, resulting in a net short-term capital loss of $3,000. We then add this to his long-term capital gain of $4,000, giving us a net capital gain of $1,000.

Finally, we subtract Marc's total deductions from his total income. Since we don't have any information about his deductions, we'll assume they're equal to the standard deduction for a single taxpayer in 2021, which is $12,550.

Therefore, Marc's AGI is:

$39,000 (total income) 
- $3,000 (net capital loss) 
- $12,550 (standard deduction)

= $23,450.

So, the correct answer is C.

In the Current Year, Marc, a Single Taxpayer, Has Ordinary