John files a return as a single taxpayer.In 2014,he had the following items: -Salary of $40,000.
-Loss of $65,000 on the sale of § 1244 stock acquired two years ago.
-Interest income of $6,000.
Determine John's AGI for 2014.

Question

Quizplus · Accepted Answer

Salary $40,000
Interest income 6,000
Ordinary loss (§ 1244 ordinary loss)(50,000)
AGI $ -0-
$15,000 ($65,000 - $50,000)is long­term capital loss.Of this amount,no loss can be used because there is no ordinary income.$15,000 will be carried forward.

John Files a Return as a Single Taxpayer