Reuben,a single taxpayer,has wage income of $75,000.He also has a short-term capital loss of $5,000,a short-term capital gain of $2,000,and a long-term capital gain of $3,000.What is Reuben's AGI for 2014?

Question

Quizplus · Accepted Answer

Reuben's AGI is calculated by adding his wage income to his net capital gains/losses. His net capital gain/loss is calculated as follows: $2,000 (short-term gain) + $3,000 (long-term gain) - $5,000 (short-term loss) = $0. Therefore, his AGI is $75,000 (wage income) + $0 (net capital gain/loss) = $75,000.

Reuben,a Single Taxpayer,has Wage Income of $75,000