During 2017, George receives a $55,000 salary and has no deductions for AGl. In

Question

During 2017, George receives a $55,000 salary and has no deductions for AGl. In 2016, George had a $3,500 STCL available and no other capital losses or capital gains. Consider the following sales An automobile purchased in 2012 for $13,300 and held for personal use is sold for $4,000. * On April 10, 2017, stock held for investment is sold for $39,000. The stock was acquired on November 20, 2016, for $7,700 Requirement Determine George's AGI for 2017. (Assume that the 2016 STCL of $3,500 is before George has taken any capital loss deduction in 2016. Complete all answer boxes. Enter a "O for any zero-balances.) 2017 Salary Net short-term capital gain (loss) Net long-term capital gain (loss) Total AG

Explanation / Answer

**Short term capital gain on Investment = 39000-7700= 31300

Net short term capital gain = 31300-500=- 30800            [Assumed that out of 3500,3000 of STCL is set off in 2016 and 500 of loss is carried foward]

2017 salary 55000 Net short term capital gain /(loss) 30800 Net long term capital gain /(loss) 4000-13300 (9300) Total AGI 76500

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