In 2014, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capital gains, short-term capital losses of $6,000, and long-term capital gains of $4,000. What is Marc's adjusted gross income (AGI) for 2014?

Question

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To calculate Marc's AGI, we start with his ordinary income of $35,000 and add his long-term capital gains of $4,000, for a total of $39,000. Then we subtract Marc's short-term capital losses of $6,000 from his short-term capital gains of $3,000, which gives us a net short-term capital loss of $3,000. This net short-term capital loss is deductible up to $3,000 against ordinary income. Therefore, Marc's AGI is $39,000 - $3,000 = $36,000.

In 2014, Marc, a Single Taxpayer, Has Ordinary Income of $35,000