The gains and losses from sales of capital assets for the current year by H are summarized as follows: Long-term gains $\quad\$ 3,000$
Short-term gains $\quad 3,000$
Short-term losses $\quad ( 1,800 )$ Assuming H has a net § 1231 gain of $1,600 and depreciation recapture of $2,000, what is the increase in his A.G.I., if any, from these transactions?

Question

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The increase in AGI is calculated by summing the net gains and depreciation recapture. Long-term gains ($3,000) + short-term gains ($3,000) - short-term losses ($1,800) + net § 1231 gain ($1,600) + depreciation recapture ($2,000) = $7,800.

The Gains and Losses from Sales of Capital Assets for the Current