Evaluate the amount of net short-term capital gain

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Reference no: EM134045

Question :

Consider the four independent situations below for an unmarried individual, and examine the effects of the capital gains and losses on the individual's AGI.

Situation 1 Situation 2 Situation 3 Situation 4

AGI (excluding property transactions) $40,000 $50,000 $60,000 $70,000

Short-term capital gains (STCG) 6,000 2,000 5,000 6,000

Short-term capital losses (STCL) 2,000 5,000 4,000 15,000

Long-term capital gains (LTCG) 3,500 15,000 10,000 9,000

Long-term capital losses (LTCL) 2,500 4,000 12,000 4,000

Required:

a. Evaluate the amount of net short-term capital gain (NSTCG) or net short-term capital loss (NSTCL).

b. Evaluate the amount of net long-term capital gain (NLTCG) or net long-term capital loss (NLTCL).

c. Determine AGI after considering the capital gains and losses.

d. Recognize if in any of the four situations there is a loss carryforward.

Reference no: EM134045

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