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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