For the current year,David has salary income of $80,000 and the following property transactions: Stock investment sales-
Long-term capital gain $ 9,000
Short-term capital loss (12,000)
Loss on sale of camper (purchased 4 years ago and used for family vacations)(2,000)
What is David's AGI for the current year?
A)$76,000.
B)$77,000.
C)$78,000.
D)$89,000.
E)None of these.

Question

Quizplus · Accepted Answer

The loss from the sale of the camper is personal and,therefore,is not deductible.Netting the short-term capital loss of $12,000 against the long-term capital gain of $9,000 produces a net short-term capital loss of $3,000.Offsetting the capital loss against ordinary income yields AGI of $77,000 ($80,000 - $3,000).

For the Current Year,David Has Salary Income of $80,000 and the Following