Mr. and Mrs. Philips recognized the following capital gains and losses this year. $$\begin{array} { | l | c | }
\hline \text { Yhort-tern capital gair } & \$ 10,000 \
\hline \text { Ehort-tern capital loss } & \$ ( 4,000 ) \
\hline \text { Iong-tern capital gain } & \$ 45,000 \
\hline \text { Iorg-tern capital loss } & \$ 60,000 ) \
\hline
\end{array}$$ Their AGI before consideration of these gains and losses was $140,000. Compute their AGI.

Question

Mr. and Mrs. Philips recognized the following capital gains and losses this year. $$\begin{array} { | l | c | } 
\hline \text { Yhort-tern capital gair } & \$ 10,000 \
\hline \text { Ehort-tern capital loss } & \$ ( 4,000 ) \
\hline \text { Iong-tern capital gain } & \$ 45,000 \
\hline \text { Iorg-tern capital loss } & \$ 60,000 ) \
\hline
\end{array}$$ Their AGI before consideration of these gains and losses was $140,000. Compute their AGI.

Quizplus · Accepted Answer

Short-term capital gain: $10,000
Short-term capital loss: ($4,000)
Net short-term capital gain: $6,000

Long-term capital gain: $45,000
Long-term capital loss: ($60,000)
Net long-term capital loss: ($15,000)

Net capital loss: ($9,000)

AGI after consideration of gains and losses: $140,000 + $6,000 - $15,000 = $131,000

Therefore, the answer is (B) $131,000.

Mr and Mrs Their AGI Before Consideration of These Gains and Losses Was