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Computing Adjusted Gross Income

Phil and Susan are married, filing a joint return. The couple has two dependent children. Susan has wages of $34,000 in 2008. Phil does not work due to a disability, but he is a buyer and seller of stocks on the Internet. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. The couple's 2008 stock transactions are detailed below. In addition, they have $, 2300 of qualifying dividends.

Item Date Acquired Date Sold Cost Sales Price
Black stock 11/10/07 3/12/08 $2K $5K
Blue stock 12/13/06 5/23/08 $36K $32K
Puce stock 12/14/03 7/14/08 $13K $14,5K
Ecru stock 6/29/07 5/18/08 $26K $27K
Red stock 5/15/07 10/18/08 $67K $67,800
Gray stock 4/23/06 10/18/08 $89K $88,200

What is Phil and Susan's AGI?

Solution Preview

First, let us compute their net short- or long-term capital gain or loss:

Item Short-term Long-term

Black stock ($3,000)
Blue stock ...

Solution Summary

Phil and Susan are married, filing a joint return. The couple has two dependent children. Susan has wages of $34,000 in 2008. Phil does not work due to a disability, but he is a buyer and seller of stocks on the Internet. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. The couple's 2008 stock transactions are detailed below. In addition, they have $, 2300 of qualifying dividends.

Item Date Acquired Date Sold Cost Sales Price
Black stock 11/10/07 3/12/08 $2K $5K
Blue stock 12/13/06 5/23/08 $36K $32K
Puce stock 12/14/03 7/14/08 $13K $14,5K
Ecru stock 6/29/07 5/18/08 $26K $27K
Red stock 5/15/07 10/18/08 $67K $67,800
Gray stock 4/23/06 10/18/08 $89K $88,200

What is Phil and Susan's AGI?

$2.19