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Phil and Susan are married taxpayers, filing a joint return. The couple have two

ID: 2456763 • Letter: P

Question

Phil and Susan are married taxpayers, filing a joint return. The couple have two dependent children. Susan has wages of $34,000 in 2015. 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 2015 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.

Item       Date Acquired     Date Sold          Cost      Sales Price
A.)Blue stock       11/10/14            3/12/15        $3K            $6K
B.)Puce stock       12/13/13          5/23/15        $36K         $32K
C.)Beige stock     12/14/10           7/14/15       $13K         $14,500

D.)Red stock          6/29/14            5/18/15       $26K             $27K
E.)Black stock       5/15/14           10/18/15     $67K         $67,800
F.)Gray stock         4/23/13        10/18/15       $89K        $88,200

Determine the gain or loss for each of the stock transactions and the amount ?

What is Phil and Susan's AGI?

Explanation / Answer

Phil and Susan are married taxpayers, filing a joint return. The couple have two