Gabriella,a single taxpayer,has wage income of $160,000.In addition,she has $7,000 in long-term capital losses,$1,000 in long-term capital gains,$3,000 in short-term capital gains,and $1,000 in short-term losses.What is Gabriella's AGI for 2014?

Question

Quizplus · Accepted Answer

Gabriella's long-term capital losses ($7,000) can offset her long-term capital gains ($1,000), resulting in a net loss of $6,000. Her short-term capital gains ($3,000) can also be offset by her short-term losses ($1,000), resulting in a net gain of $2,000. The net capital loss is then $4,000 ($6,000 - $2,000). Gabriella's AGI is calculated by subtracting her total deductions from her total income, which gives us $160,000 - $4,000 = $156,000. Therefore, the correct answer is choice letter B.

Gabriella,a Single Taxpayer,has Wage Income of $160,000