Yolanda, a single taxpayer, has W-2 income of $87,500. She also has a short-term capital loss of $7,000, a short-term capital gain of $1,000, and a long-term capital gain of $2,000. What is Yolanda's AGI for 2015?

Question

Quizplus · Accepted Answer

Yolanda's AGI is calculated by subtracting the net capital loss from her W-2 income. The net capital loss is $6,000 ($7,000 loss - $1,000 gain). Since only $3,000 of capital loss can be deducted against ordinary income per year, her AGI is $87,500 - $3,000 = $84,500.

Yolanda, a Single Taxpayer, Has W-2 Income of $87,500