Question

Nell, single and age 38, had the following income and expense items in 2019: Nonbusiness bad debt $6,000 Business bad debt 2,000 Nonbusiness long-term capital gain 4,000 Nonbusiness short-term capital loss 3,000 Salary 50,000 Interest income 3,000 Personal casualty gain on an asset held for four months 10,000 Personal casualty loss on an asset held for two years 1,000 Assume all casualty losses are after the application of the $100-per-event floor. Determine Nell's AGI for 2019. (Hint: What happens to the character of personal casualty gains and losses when gains exceed losses?) Salary $ Interest income Business bad debt Net short-term capital gain Net long-term capital gain $ Adjusted gross income $

What is the net short term capital gain? and total AGI?

Answer 1

Salary		50,000
Interest income		3,000
Less: Business bad debt		-2,000
Non-business bad debt (short term capital loss)	-6000
Short term capital loss	-3000
Total loss	-9000
Long term capital gain	4,000
Net short term capital loss over capital gain	-5,000
Capital loss limit : 3000		-3000
AGI		48,000