Phil and Susan are married taxpayers, filing a joint return. The couple has two
ID: 2458532 • Letter: P
Question
Phil and Susan are married taxpayers, filing a joint return. The couple has 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 stock quickly. The couple's 2015 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.
Item Date required Date sold Cost SalesPrice
Blue stock 11/10/14 3/12/15 $3,000 $6,000
Puce stock 12/13/13 5/23/15 $36,000 $32,000
Beige stock 12/14/10 7/14/15 $13,000 $14,500
Red stock 06/29/14 5/18/15 $26,000 $27,000
Black stock 05/15/14 10/18/15 $67,000 $67,800
Gray stock 04/23/13 10/18/15 $89,000 $82,000
What is Phil's and Susan's AGI?
Explanation / Answer
Phil's and Susan's AGI Is as follows -
Wages $34000
Dividends $2300
Profit/loss on sale of stock $3000
($4000)
$1500
$1000
$800
($7000)
AGI = $31600