I:5-53Capital Gains and Losses.During 2015, Gary receives a $50,000 salary and has no deductions for AGI. In 2014, Gary had a $5,000 STCL and no other capital losses or capital gains. Consider the following sales and determine Garys AGI for 2015.

• An automobile purchased in 2010 for $10,800 and held for personal use is sold for $7,000.

• OnApril10,2015,stockheldforinvestmentissoldfor$21,000.ThestockwasacquiredonNovember20,2014,for$9,300

I:5-61Betty incurs the following transactions during the current year. Without considering the transactions, her 2015 AGI is $40,000. Analyze the transactions and answer the following questions:

• On March 10, 2015, she sells a painting for $2,000. Betty is the artist, and she completed the painting in 2010. Her basis for the painting is $50.

• On June 18, 2015, she receives $28,500 from the sale of stock purchased by her uncle in 2000 for $10,000, which she inherited on February 20, 2015, as a result of her uncles death. The stocks FMV on that date is $30,000.

• On July 30, 2015, she sells land for $25,000 that was received as a gift from her brother on April 8, 2015, when the lands FMV was $30,000. Her brother purchased the land for $43,000 on October 12, 2007. No gift tax was paid.

1. What is her NSTCL or NSTCG?

2. What is her NLTCL or NLTCG?

3. What is the effect of capital gains and losses on her AGI?

4. Whatishercapitallosscarryforwardtothenextyear?

I:5-48Capital Gains and Losses.Consider the four independent situations below for an unmarried individual, and analyze the effects of the capital gains and losses on the individuals AGI. For each case, determine AGI after considering the capital gains and losses.

AGI (excluding property transactions)	$40,000	$50,000	$60,000	$70,000
STCG	6,000	2,000	5,000	6,000
STCL	2,000	5,000	4,000	15,000
LTCG	3,500	15,000	10,000	9,000
LTCL	2,500	4,000	12,000	4,000