Gabriella, a single taxpayer, has wage income of $160,000. In addition, she has $7,000 in long-term capital losses, $1,000 in long-term capital gains, $3,000 in short-term capital gains, and $1,000 in short-term losses. What is Gabriella's AGI for 2015?

Question

Quizplus · Accepted Answer

AGI = Wage income + Net capital gain/loss
Net capital gain/loss = (long-term gains - long-term losses) + (short-term gains - short-term losses)
Net capital gain/loss = ($1,000 - $7,000) + ($3,000 - $1,000) = -$4,000
AGI = $160,000 - $4,000 = $156,000
Therefore, the answer is B) $157,000.

Gabriella, a Single Taxpayer, Has Wage Income of $160,000