Abby, a single taxpayer, purchased 10,000 shares of 1244 stock several years ago at a cost of $20 per share. In November of the current year, Abby received an offer to sell the stock for $12 per share. She has the option of either selling all of the stock now or selling half of the stock now and half of the stock in January of next year. Abby will receive a salary of $80,000 for the current year and $90,000 next year. Abby will have long-term capital gains of $8,000 for the current year and $10,000 next year.

If Abby's goal is to minimize her AGI for the two years, determine whether she should sell all of her stock this year or half of her stock this year and half next year.

a. Determine Abby's total AGI under both options for the current year and next year.

If an amount is zero, enter "0".

Sell all of the stock this year:
Current year's AGI
Salary		$80,000
Ordinary loss		$
Long-term capital gain	$8,000
Less: long-term capital loss	$
Equals: net long-term capital loss	$
Deductible net long-term capital loss		$
Adjusted gross income		$
	$
Next year's AGI
Salary		$90,000
Long-term capital gain	$10,000
Less: net long-term capital loss carryover	$
Equals: net long-term capital loss (before limitation)	$
		$
Adjusted gross income		$
Total AGI
Current year		$
Next year
Total		$
Sell half of the stock this year and half next year:
Current year's AGI
Salary		$80,000
		$
Long-term capital gain	$8,000
Less:	$
Equals:	$
		$
Adjusted gross income		$
Next year's AGI
Salary		$90,000
		$
Long-term capital gain	$10,000
Less:	$
		$
Adjusted gross income		$
Total AGI
Current year		$
Next year
Total		$