Consider the four independent situations below for an unmarried individual, and analyze the effects of the capital gains and losses on the individual's AGI.
Situation 1 Situation 2 Situation 3 Situation 4
AGI (excluding property transactions) $40,000 $50,000 $60,000 $70,000
Short-term capital gains (STCG) 6,000 2,000 5,000 6,000
Short-term capital losses (STCL) 2,000 5,000 4,000 15,000
Long-term capital gains (LTCG) 3,500 15,000 10,000 9,000
Long-term capital losses (LTCL) 2,500 4,000 12,000 4,000
Required:
a. Calculate the amount of net short-term capital gain (NSTCG) or net short-term capital loss (NSTCL).
b. Calculate the amount of net long-term capital gain (NLTCG) or net long-term capital loss (NLTCL).
c. Calculate AGI after considering the capital gains and losses.
d. Identify if in any of the four situations there is a loss carryforward.