Question
Megan has $50,000 AGI without considering the following information. During the year, she incurs a LTCL of $6,000 and has a gain of $17,000 due
Megan has $50,000 AGI without considering the following information. During the year, she incurs a LTCL of $6,000 and has a gain of $17,000 due to the sale of a capital asset held for more than a year.
Requirement a. If the $17,000 gain is not properly classified as a LTCG (i.e., is improperly treated as an ordinary gain), determine Megan's AGI. Megan's AGI would be $ .
Requirement b. If the $17,000 gain is properly classified as a LTCG, determine her AGI. Megan's AGI would be $ .
Requirement c. If Megan has a $5,500 STCL carryover from earlier years, how would the answers to Parts a and b be affected? Megan's AGI using Part a information would be $ and the AGI using Part b information would be $ .
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