Theresa and Oliver, both over 65 years of age and married filing jointly, have no dependents. Their 2019 income tax facts are:
Theresa’s wages$165,000
Oliver’s wages33,000
Short-term capital gain36,000
Long-term capital loss(41,000)
What is their taxable income for 2018?
What will be an ideal response?
The couple’s taxable income is $168,000. Their long-term capital loss carryover is $2,000 ($5,000 – $3,000).?
| Wages ($165,000 + $33,000) | $198,000 | |
| Short-term capital gain | $36,000 | |
| Long-term capital loss | (41,000) | |
| Net long-term capital loss | ($ 5,000) | |
| Capital loss deduction (limited to $3,000) | (3,000) | |
| Adjusted gross income | $195,000 | |
| Standard deduction | (24,400) | |
| Additional standard deduction (2 × $1,300) | (2,600) | |
| Taxable income | $168,000 |
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