Question

John files a return as a single taxpayer. In 2019, he had the following items: ∙ Salary of $30,000. ∙ Loss of $65,000 on the sale of Section 1244 stock acquired two years ago. ∙ Interest income of $6,000. In 2020, John again files a return as a single taxpayer and had the following items: Salary of $114,000 Loss of $55,000 on the sale of Section 1244 stock acquired three years ago. Capital gain of $22,000 on the sale of publicly traded stock purchased one year ago. Determine John’s AGI for 2019 and 2020 (assume these are the only transactions, no other carryovers etc...)

Answer 1

Particulars	2019
Ordinary Income
Salary	$      30,000
Loss on sale of 1244 stock	$     (50,000)
Capital losses adjustment	$       (3,000)
NOL carryovers	$      23,000
Ordinary Income	$               -
Capital loss on sale of 1244 stock	$     (15,000)
Adjusted against ordinary income	$         3,000
Capital Loss Carryovers	$      12,000
Capital gain / loss	$               -
Interest income	6000
AGI	6000

Particulars	2020
Ordinary Income
Salary	$    114,000
Loss on sale of 1244 stock	$     (50,000)
NOL carryovers	$    (23,000)
Ordinary Income	$      41,000
Capital loss on sale of 1244 stock	$       (5,000)
Caital Gain on the sale of stock	$      22,000
Capital Loss Carryovers	$     (12,000)
Capital Gain	$        5,000
AGI	$      46,000