Hiroko,a single taxpayer,has wage income of $80,000.In addition,she has $5,000 in long-term capital losses,$4,000 in long-term capital gains,and $4,000 in short-term capital gains.What is Hiroko's AGI for 2016?

Question

Quizplus · Accepted Answer

Hiroko's total long-term capital losses ($5,000) exceed her total long-term capital gains ($4,000), resulting in a net long-term capital loss of $1,000. This $1,000 loss can be used to offset her short-term capital gains of $4,000, resulting in a taxable capital gain of $3,000. 
Thus, her total income would be $80,000 + $3,000 = $83,000, making the correct answer choice C.

Hiroko,a Single Taxpayer,has Wage Income of $80,000